Growth in the Asian telecommunications market became a huge potential for Lucent and their decision to move production to Taiwan was vital in supporting the spike in demand. However, the supply chain redesign was not enough. By 2000 component demand was greater than the respective supply and the company was having material shortages. To add to the problems, lead times more than doubled and inventories increased by 25 percent. Furthermore, the redesign caused fear in the sense that moving Asian
Introduction: Levendary Café is a brand of quick casual restaurant in U.S. for 32 years. It was built on a culture that emphasized “delighting the customer” by translating into local menu adaptions; and its character to other quick casual restaurant is that willingness to take risks. In the 2008, the company faced the problem that domestic growth was slowing, so its expansion strategy was established. Mia Foster, who was named as Levendary Café’s new CEO in January 2011, faced a critical challenge that the skepticism came from Wall Street. As she knew the condition of Levendary’s recent entry into China market would be concerned, so she wanted to break the dilemma by revising the dramatic departure caused by Louis Chen, president of Levendary China.
After our calculations we can say that the Vice President should decide to invest in the ship if the company operates in China, or alternatively if the company, by operating in the US keeps the capsize until the end of its useful life. Briefly, she definitely shouldn’t accept the investment related to the acquisition of the vessel in case it is based in the US and, additionally, wants to sell the ship after 15 years. Summary of Facts : Ocean Carriers Inc. is a shipping Company based in New York and Hong Kong. It possesses and builds capsize dry bulk carriers specialized in the transport of iron ore worldwide. The company does not operate vessels older than 15 years and every 5 years it undertakes a survey (which becomes more and more costly as the vessels get older) to assess the state of the ship.
First problem we encountered were the current and quick ratios were unusually high due to the amount of cash, receivables and short term investments that Krispy Kreme held. This is an indication that the company was not investing in other projects and remained conservative with regards to the treatment of current assets from 2001 to 2004. The net sales, receivables and inventory turnover were much lower compared to the industry, but ultimately the profit margin and return on equity remained consistent which we considered questionable. The leverage ratios were lower than the industry; the company used debt to make payments and took a line of credit. Although cash reserves were high and debt was very low, the cash ratio was lower
The factors that were controllable by Unicord were:1. Aggressively cutting prices to displace incumbents.2. Investing 189 million bahts to increase its (annual) Thai production capacity of processed tuna by 33%. The company was confident of further market share gains eventhough industry profitability remained low due to price wars involving powerfulcompetitors.In hindsight Unicord could have done the following differently:1. Unicord could have been more flexible in its cross cultural relations with themanagement at Bumble Bee.
In recent years, the company increased its number of outstanding share to finance its acquisitions, which raised the payout ratio to more than 50% in 2006. Blaine Kitchenware fears that such a dividend policy isn’t sustainable in the future. Indeed, if the company keeps a high dividend payout without the cash flow to back it up, it will have to reduce its investment plans or turn to investors for additional debt or equity financing. As pointed by a banker, because the company is over-liquid and under-levered, using Blaine kitchenware’s excess cash and new borrowing, a private equity firm could buy all the outstanding share of the company. In light of that discovery and fearing this hostile takeover, Victor Dubinski is thinking of revising the company’s financial policy (i.e.
And as well, it was very difficult from financial perspective due to financial crisis, when banks were not giving out loans and funds for every single company. Later on, Graham wanted integrate with Logoplaste to become top three players in the industry. About six times larger in revenue and with eighty arranged plants, Graham could push Logoplaste to the new
The summary stated that Germany “was characterized by fierce competition and high concentration”, and was also projected to have only a 2% growth in coffee sales from 2011-15. Similarly, the US is an especially mature market with a large number of competitors and only 4% projected growth in the industry. As the primary goal of expansion into the global market is future growth, these countries do not make for viable investment opportunities. China and Japan also did not pose as the best investment options. Firstly, the Expressamente business model is not a great fit for the market environments in the two countries.
Average turnaround time (TAT) has grown from about three days in 1989 to more than five days in 1991 while its main competitor, Golden Gate, has achieved two-day TATs and is now promising one day. As a percent of revenues, branch profits in 1989 were 20.2%; in 1991, the branch suffered a 1.7% loss (Exhibit 1). Analysis There are five fundamental problems with the current process: 1. The relative value of new policies and renewals is not clear to the underwriting teams. While new policies are important for Fruitvale’s long-run viability, they are more risky (Exhibit 1) and require more labor to process (Exhibit 2a).
This problem was mainly due to poor transportation infrastructure or requirement for inter-distribution center movement. * High rate of products return. Distribution centers received six to eight truck loads each week of products returned from stores due to obsolescence, slow sales or quality problems. * High-in stock rate. Based on Wal-mart internal data, company’s in-stock rate was in the high 90s, which was significantly higher than the industry average of 90% in 2003.