Explore how entrepreneurs make financing decisions when they are faced with timing issues and low bargaining power versus VCs. Mindersoft Stephen R. Chapin Jr., the CEO of a new startup, Mindersoft, Inc., must evaluate an offer from a venture capital firm in March 1997. The firm, Novak Biddle Venture Partners, offers to invest $2.0 million for 40 percent of the company resulting in a $5 million post-money valuation for the firm. He is concerned that the valuation offered by the venture capitalist is too low. He believes that the premoney valuation of the company should be at least $10 million based on the potential profitability of the company and the successful efforts to date in lining up several key sponsorships with national retailers.
We must also expand sales to our newer customers by utilizing public relations activities, trade shows, brand development, and sales force promotions. These changes and implementing our recipes to reach our goals will help us reach our goals on a steadier track. Sixty percent of our incremental sales will come from our existing customers by the end of the year. We must take a consultative sales approach to understand the current needs of our customers and anticipate their future needs as well to satisfy and keep our existing customers. The other forty percent of our sales will come through new customers, therefore we must reach these new customer through trade shows and leverage market research reports.
Other key factors are to maintain a record of the inventory that is being sold so the store can better equip products in all three locales and provide for better product placement within all Kudler stores. The design trade-off approach for the project is as follows. A trade-off for the company to increase revenue will be the expenditures for the frequent buyer program, because essentially the company will not see a return profit for an allotted time. The implemented program will allow the company to see a small profit after the first year of the program being implemented. Another trade-off for the company will be the stores performance.
Observe: the millers lite took the sales of Coors light. Speciality beers only hold 12% of the total market. Specialty beers sold the most: in 2012 central with 39 million least east Labbat Ice has been increasing in sales by 8.8 million in the 4 years. Not available in the east. Top brand is microbreweries 39 million out of the 86 million Signature cream ale has been selling one million or less.
Terry estimated her investment on the product should be 75,000 to 95,000 in inventory to begin with considering off peak times when customers are likely to buy. This scenario indicates a great way to contingency planning because Terry has thought about possible problems such as seasonal peak and valleys she might run into. She has prepared this issue by finding an alternative way to still sell her products even with off peak times by creating a website for customers from all over to purchase. She has also prepared herself to dedicate more time working longer hours at the store to be available to potential customers. Nevertheless, Terry has some excellent solutions to her planning although she has some aspects of her business goal I find might need some modifications.
FANTASTIC MANUFACTURING FACTS To continue the good business relationships with Fantastic’s’ SUPPLIERS (in Hong Kong and Taiwan) and CREDITORS (the bank via 60 day bank draft) we must develop longer range forecasts so that our suppliers can arrange way to produce more and so that our creditors are aware of our increasing need for capital as our sales volume increases. The Business • Manufacture and market ceiling fans • Rose and Turner went abroad to find exclusive suppliers in Hong Kong and Taiwan • Initial objective was to get product on the shelves and have the small retailers advertise heavily • Consumers began to realize that ceiling fans were energy-savings devices which created greater growth potential for the industry • 2 major competitors- Hinter and Casablanca both produced domestically by Emerson Electric • 2 customers accounted for 40% of sales although Fantastic served more than 100 customers annually The Product • Fantastic held a COST advantage over competition because of outsourcing • All Fantastic fans had a 7-year warranty Accounting Factors • Commission to salesmen were paid in the same month sales were made • Customers paid 60-90 days (2-3months) after Fantastic shipped finished products PAYMENT TO SUPPLIERS • Fantastic issued letters of credit to the suppliers once the order was submitted, in turn the suppliers submitted these letters of credit for payment when they had manufactured the goods and the goods were shipped (30 after the order was placed) • Fantastic did not keep cash on hand to pay for supplies • Once the letter of credit was submitted to the bank, Fantastic typically drew a 60-day draft on the amount of the needed funds to pay for supplies • The bank would accept the draft and extend the loan for a
HD offers a broad selection of 32 products models, has 650 dealers in the US & has the largest market share in the US. However, Harley only has 7.7% of European market share (the second largest motorcycle market in the world) & 25.3% of the Asian/Pacific region.. Clearly, HD’s strenghts are in the US market, as 90% of Harley’s revenue comes from the US sales Concernig the liquidity ratio (ability to turn short term assets into cash) or the leverage ratio (how much a firm is financed by debt), HD is doing better than the industry average in his category & significantly better than its main competitor Honda. A threat for HD is certainly the price of the motorcycle in comparaison with the competitors. An explanation is that they want to use the best quality material but also the best labour competencies. They also invest a lot in the R&D department.
Kudler Fine Foods Frequent Shopper Program Concerns Kudler Fine Foods wants to implement a frequent shopping program to monitor the shopping habits of its customers, and increase customer satisfaction with a projected revenue increase of 4.75% over the first year. As Kudler Fine Foods is a high end grocer, the goal of the frequent shopping program will not be centered around cost savings, but as a point system offering exclusive awards similar to credit card point systems. Kudler Fine Foods can increase customer satisfaction by tailoring their inventories around customer’s shopping habits, but some concerns need to be addressed concerning the tracking of individual customer purchases. The management needs to understand how the frequent shopper
Something else people should know is the money given to the 911 Commissioners was 2-4 times less than what they needed to make a thorough investigation. I have researched some statistics to show just how small the amount of money given to the 911 Commissioners really was. They ended up with 15 million dollars for the Commission thanks to congresses $11 million they contributed and other sources that helped donate, To put the 911 investigation into perspective, the Columbia Space Shuttle investigation was $175 million. The Challenger investigation was $100 million, and the Monica Lewinsky investigation was $30 million. 911 was the greatest crime in U.S. history and had the least amount of money going into the investigation.
Presently, the company is using a combination of traditional seasonal dating plan and trust receipt plan to encourage and enable as many dealers as possible to be well stocked in advance of seasonal sales peaks. Also, this combination was used to retain security interest in merchandise shipped. PROBLEM DEFINITION With the current internal complications, what must O.M. Scott and Sons Company do to be able to decrease cost of sales and operating expenses? How will the company keep up with its goal of a 25% annual growth rate in sales and profit considering the current policies?