Impala Athletics – Business Simulation Game JHT2 Strategic Management, Task 1 January 27, 2015 Introduction 3 A. Artifacts 3 B. Company Strategy 7 B1. Effectiveness 10 C. Competitor 13 C1. Next Moves 16 D. Sustainability 16 E. Strategies 17 F. Value Chain Analysis 21 G. Important Issues 23 References 27 Introduction: Impala Athletics is an athletic footwear company was founded 10 years ago. The company sells over 5 million pairs of athletic shoes annually in several geographic markets that include North America, Europe-Africa, Asia-Pacific, and Latin America.
The bonds mature in 10 years. The firm’s average tax rate is 30% and its marginal tax rate is 34%. b. A new common stock issue that paid a $1.75 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 8% per year.
This shows us that discounting the machine will not bring positive cash flows to the buying company. This GRAPH shows us that even though they would’ve met their 5 years maximum plan this opportunity of an investment would not be good because the values we get from the Buyers DCF is less than the current cost of the investment. I would have to decline this bid. Year | Number of Plates | Old Price Per Plate | New Price Per Plate | Buyer Cash Flow | Buyer DCF | Seller Cash Flow | Seller DCF | 1 | 225 | 5.00 | $2.00 | ($5,325) | ($5,325) | $2,335 | $2,335 | 2 | 225 | 5.15 | $2.06 | $695 | $695 | $329 | $329 | 3 | 225 | 5.30 | $2.12 | $716 | $716 | $342 | $342 | 4 | 225 | 5.46 | $2.19 | $738 | $738 | $357 | $357 | 5 | 225 | 5.63 | $2.25 | $760 | $760 | $371 | $371 | Year | Number of Plates | Old Price Per Plate | New Price Per Plate | Buyer Cash Flow | Buyer DCF | Seller Cash Flow | Seller DCF | | | | Totals | $584 | $584 | $3,734 | $3,734 | Client-Specific Parameters | | | | | | | Salvage Value (new machine) | $3,000 | | Salvage value of a new
negative 2500 $.The company needs to raise about 40,000 $ as the ending cash balance for the month of July is negative 40,000 $. The Company can get a short term loan for 40,000 $ which can be repaid in October. 2. Even though the Company started with a Capital of 250,000 $ it still ends up with a zero bank balance. This is because the increase in the collections of Accounts Receivable from customers is not sufficient to recover the total disbursements (variable production cost and the fixed cost).
Zappos offers free shipping on both orders and returns and a 365-day return policy. Clearly, their customer-first approach is working, since 75% of their customers are repeat buyers. Zappos’s Background In 1999, Zappos founder Nick Swinmurn approached Tony Hsieh and Alfred Lin with the idea of selling shoes online. At that time, Tony Hsieh was running an investment company funded from selling his previous company, Link Exchange. Link Exchange was founded by Tony Hsieh and Sanjay Madan in 1996, one year after both graduated from Harvard.
12,897 b. 12,720 c. 42,400 d. Other 2. A local bank offers an account that pays 8%, compounded quarterly, for any deposits of $10,000 or more that are left in the account for a period of 5 years. The effective annual rate of interest on this account is: a. 4.65% b.
The company’s proforma statements did not take into account any external factors such as a retail recession taking place. The amount of money invested in inventory is almost double what was forecasted for the nine-month period. Profit margin was only 10%, which was much lower than the forecasted 15-30%. By October of 1995 it should have been obvious to SureCut Shears that sales were not keeping up with what was forecasted causing inventory to build up. Conclusion: If Fischer wants to be able to repay his loan he needs to be more accurate
By utilizing their strong balance sheet, including $435 million in cash and cash equivalents at the end of the second quarter of fiscal 2010, and future cash flows funding of this program will be carried out at all. Table of Contents Serial | Description | Page No | 1 | Company Overview | 02 | 2 | Company History | 2-3 | 3 | Product Categories | 4-6 | 4 | Swot Analysis | 7-11 | 5 | Porter’s 5 forces Analyses | 12 | 6 | BCG Analysis | 13-14 | 7 | Strategic Plan for Fossil | 14 | 8 | Recommendation | 15 | 9 | General References | 16 | Company Overview Fossil is a global design, marketing, and distribution company specializing in consumer fashion accessories. Their portfolio is comprised of globally recognizable owned and licensed brands, which offer a diverse range of products in the watch, jewelry, handbag, small leather good, belt, sunglasses, soft accessory and clothing product categories. Founded in 1984 as Overseas Products International and incorporated as Fossil Inc. in 1991, the company experienced high year on year growth before competing an IPO in 1993. At present time, Fossil’s products are distributed globally through both wholesale and direct To consumer channels, and are sold at a broad range of price points.
With this new development, if we assume that the previous 4,796,000 shares of common stock that were originally issued in March of 1993 are now also worth $1 per share, this gives a total of $4,796,000. The total valuation of the company will then be $800,000 + $4,796,000 = $5,596,000. This is the value that we believe to represent the valuation of Neverfail as of November 1994. After round 1 of VC investment: Due to the deal with the Pacific Ridge, Neverfail share prices were going for $1.50 per share The Company was valued at $9 million as of December 1994 according to the case study. Initial value of Pacific ridge investment (December 1995) is: 666,667 * $1.50 + 133,333 * $0.3 = $1,040,000.4 (initial investment, exhibit 7).
The company grew steadily under Sara Lee and Frankfort, but Frankfort also was focused on other Sara Lee business. However, after 10 years of working on various brands, Frankfort stated he wanted to focus solely on his original company and was made CEO of Coach. In 1996, Frankfort hired Reed Krakoff as Executive Creative Director. Krakoff had begun his career as a designer at Polo Ralph Lauren, and was most recently credited with increasing annual sales from $80 million to $1 billion as the creative director at Tommy Hilfiger. Upon his arrival, sales at Coach were about $500 million annually and the average consumer was about 40 years old.