As outlined by the text, investor reaction is indicative that the acquisition of PacifiCorp would be value adding for both Berkshire as well as Scottish Power. The change in stock price is implicative that $43 billion is put to great use, as oppose to sitting in Cash and Cash equivalent section of Berkshire’s balance sheet. More importantly, because Berkshire already has an Energy Holding Company, PacifiCorp being a low-cost energy provider would enhance the company’s overall reach in terms of market share. Therefore there is the potential and high probability of synergy between MidAmerican Energy and PacifiCorp, resulting in the market perception that more value will be added to Berkshire overall. The text
The large business portfolio with diversified products, together with growth opportunities makes Rohm&Haas a desired target. Not only that, but the company has a strong leadership team with experience based on costumer focus and innovation which can contribute to Dow’s transformation strategy. Valuation using the Original Forecast In order to do the discounted cash flow analysis, we needed to calculate first the weighted average cost of capital (WACC). We have used the following formula: WACC = [KD * (1 - Tax Rate) * (D/V)] + [KE * (E/V) ] (1) As can be observed in Table 1, the value obtained for WACC is 8,5% , which we consider to be appropriate. Weighted Average Cost Of Capital | | Risk-free Rate (Rf) | 4,92% | Equity Beta (bE) | 1,06 | Equity Risk Premium (ERP) | 5,07% | Cost of Equity (KE) | 10,3% | Tax Rate | 35% | Cost of Debt (KD) | 6,1% | Debt / Value Ratio (D/V) | 28% | Equity / Value Ratio (E/V) | 72% | WACC | 8,5% | Table 1.
Discuss the benefits to QRL of using marketing techniques such as the PLC and Boston Matrix to help make a decision about its product portfolio. (16 marks) The Boston Matrix and the product life cycle are tools to help a business assess its range of products. The business can assess whether it has a balanced portfolio and whether it has sufficient profit makers and revenue generators both now and in the future. Star products such as the ….... are already profitable and the high potential for growth will mean it will become more significant in the future. They are the cash cows of the future.
As a front runner of this technology, Wal-Mart has recognized how the RFID enabling technology increases retailer’s logistical mission of right product at the right place and time, thus improving SCM efficiency; and increasing sales and profits. Supply Chain Management (SCM) is the logistical management of assets, information, and capital in their movement in a supply chain process between suppliers, manufacturers, wholesalers, retailers and, ultimately, to the consumer. Businesses look for innovations and advancements in Automatic Identification and Data Capture / Collection (AIDC) techniques and products to enhance their SCM logistical systems and processes. Radio Frequency Identification (RFID) technology is an AIDC technique that has attracted significant interest from companies over the past eight years. Considered as “the next big thing for management” (Wyld, 2006), RFID enables business information gathering throughout a company’s value SCM chain to provide critical information for speedy and accurate decision-making.
The Company had had enormous success in competing with the world renowned brands. It has created a unique position in the minds of the consumer that leads to sustain sales, as well as, result in higher brand loyalty and customer retention rate. The case study presents details of the management and operation of Zara with complete description and analysis. The case presents several facets of its management that lead to a better management. The case focuses upon strategic planning and management using several management tools to excel in the market on a quite sustainable basis.
Answer: . The VCs apparently think that Zazzle’s business model is scaleable, meaning that sales will quickly grow, and that as more sales are spread out over the same technological infrastructure, profits will rise. They may also feel that Zazzle is a platform for the sale of customized on-demand products, and that t-shirts, stamps, and posters are only the start. On the con side, its hard to image that Zazzle will create as much interest as the VCs project. With all due respect to John Doerr, he is the VC who said that Seg way would be the fastest company in American history to reach $1 billion in sales (see the “What Went Wrong” feature in Chapter 1).
- To be the preferred provider. Strategies to achieve the above mentioned goals: 1) Invest in projects that increase shareholders values : This object is one of the financial goals to invest properly. Marriott used discounted cash flow techniques to evaluate potential investment. It is beneficial because it is considered present time value. Projects which increase shareholder value could be formed with benchmark hurdle rates, the company can ensure a return on projects which results in profitable and competitive advantage.
With modern facilities it is possible to extend the theoretically given efficient frontier of a supply chain (Chopra/Meindl, 2007, pp. 44-45) and to achieve additional “supply chain surplus”, which at the end is supporting strongly the company’s financial performance. 2. Inventory During 2006 Rolls-Royce raised its inventory with the clear intention to increase the responsiveness of its supply chain (growth in output; stock for aftermarket support; stocks of rare raw materials). A higher inventory always means to have some financial capital bounded.
To counter increased competition, industry leaders are doubling advertising budgets and increasing promotional initiatives to entice consumers to buy their brand. CP is in a unique position to launch a new product because they are the top competitor in the industry, holding 23.3% volume share. Concept tests and consumer trials have proven that
Case Analysis#2 Levi Strauss Japan K.K. Situation: Mr. A. John Chappell, president and representative director of Levi Strauss Japan K.K(LSJ) was concerned about the market shrinkage of the company's product and distribution strategy. He was worried about what new marketing strategies he should implement for the improvement of the market share. Problem A: As Levi's market share decreased significantly, the company planned to increase the number of retail outlet stores in Japan. But Mr. A. John Chappell was worried that increasing the retail outlets might lead to a change in the pricing strategy and might have to decrease the prices by discounting the products.