United Metal Abstract This case is loosely based on a make-versus-buy decision faced by Standard Telephones and Cables (STC) Components Group (alias United Metal). Switching over from manufacturing to purchasing a particular component will affect costs, have personnel implications, free up a recently purchased machine, require some additional capital expenditure, and alter the amount of stock held, and hence the space required. Internally, there is a debate between the purchasing and production managers about the importance and relevance of these various issues. Judgements are needed on which manager is correct, and what decision United Metal should take. Case Just over a year ago, United Metal purchased new machinery for £45 000 for use in the manufacture of a particular component.
Newbridge proposed investment in Shenzhen Development Bank (SDB) in 2000 and it was now viewed as an example of how foreign private equity investment failed in China. In this report evaluates whether the 1.6 times book value that Newbridge agrees to pay for 18% state in SDB is appropriate by addressing the potential risk and growth of SDB. The evaluation of its financial performance will be based on asset quality, earning capacity and capital adequacy. Asset quality Loans provided to corporate and retail customers are an important component on a commercial bank’s balance sheet, and the quality of loans will determine whether the bank can collect the loans. Therefore the quality of loans is crucial to operational stability.
Staffing Plan Paper Magdy Joseph Zakhary MGT 431 May 29th, 2012 Linda Armstrong Staffing Plan Paper Pacific Gas & Electric (PG & E) has a stated goal of becoming the “Number one utility provider in the United States.” Currently employing approximately 20,000 personnel that take care of approximately 15 million customers throughout the utilities nearly 70,000 square miles of service territory, it would seem that PG & E is heading in that direction. The company is currently traded on the New York Stock Exchange and despite some public relations issues and a few minor operational concerns, is extremely profitable and stable. Anticipating, forecasting and planning for the various staffing needs for such a vital organization is a daunting task that falls upon the shoulders of Human Resources Senior Vice President John R. Simon. Mr. Simon, by trade, is a Lawyer, graduating from Georgetown University. Mr. Simon also holds a bachelor’s degree in Business from Colorado College.
I came to this decision by using the feasibility analysis. The Juniper programs risk is too low to be competitive in the current market. The Palomino project does not have they reward to match the risk involved in the project. The ROI on the Palomino project would be $9000 per year for 5 years. The Stargazer, while it is the highest risk project, offers the most reward for the longest period of time.
Polluter’s fiscal year ends on December 31. The U.S. government promotes emission control and persuades companies to behave more environmentally friendly by issuing EA’s. EA’s are tradable – generally through a broker. At the end of a pre-determined compliance period, the polluter entities either deliver EA’s equivalent to their actual emissions or pay a fine. As of 2010, Polluter Corp. has been emitting too much greenhouse gases because of their outdated facilities; however, they plan to re-furbish their facilities in 2014.
In addition, the company’s B+ credit rating prohibited the company from obtaining loans with low interest rates. In order to strengthen the company’s cash balance, large capital expenditures were not done during years 11 and 12. Instead, the company focused on paying down its existing debt in years 11 and 12 in order to improving its credit rating. The improved credit rating would allow the company to refinance existing debt to lower interest rates, which would lower interest payments and conserve cash. In year 11, the outstanding principal of $19.2 million from a 5-year loan at 7.5% annual interest was paid off early resulting in a savings of $1.8 million in interest payments.
The first one is to go to China and create a joint venture, the second is to go to China and begin the implementation with the “Go” Game strategy, and the last is to decide to stay out of China because the company is not ready and is willing to take the risk. Marine Gilet 10/21/12 The Acer Group’s China manufacturing decision: I. Statement of the problem: 1) Identification of the problem: The Acer Group is one of the world’s largest PC and computer component manufacturers. In 1998, M.Y.Lin, the vice-president of Acer’s Global Operations Centre for manufacturing operations had to figure out if whether or not, Acer should start full-scale manufacturing operation in the Chinese mainland. Relationships between Taiwan and China were pretty tense, mainly for political reasons.
Joyce has identified a list of parts that would be candidates for her global sourcing initiatives to China to reduce costs. Of the twenty-two parts that are potential candidates for global sourcing, eleven are already part of a strategic sourcing agreement and eleven are sourced throughout North America. She has provided us with the current price per piece but has not provided us with a price from any potential supplier from China. There are also additional costs that Joyce has identified that will be above what they currently pay for transportation, holding costs , taxes, administration fees and duties. If they source from China these charges include: • 8% duty for products from China • 25% increase in inventories, this would increase Trojans inventory holding.
Adding to that the lows median income (lowest among the 5 projects) can be among the reasons why Walmart has performed well with its low price policy. Brand Awareness impact: While the closes Target is 80 miles away from the project store, it can be assumed that Target brand dose not have a well-known brand awareness. It will take time and investment for Target to increase the brand awareness and also compete with established brand such as Walmart; all expected marketing investment on brand awareness would contribute to 25% sales increase in 5 years. Further comparison with other projects in
Hiringthe foreign workers may interfere with the policies of China¶s political and legal environment.Prior to Riordan¶s plans to expand the facility in Hangzhou and hire additional foreignworkers, the management should consider the political and legal climates of China to eliminateinterference with the goals of the company. China is a communist state but embraces a freemarket economy (Hodgetts, Luthans, & Doh, 2005). Presently the political environment is stablein comparison to Latin America or the Middle East (Hodgetts, Luthans, & Doh, 2005). However,Riordan needs to investigate thoroughly the legal and regulatory aspects of expanding the facilityand hiring foreign workers in China.The legal and regulatory environment in China needs investigating. Planning to expandthe Hangzhou facility must be approved by the government.