Case Write-Up 1 Clarkson Lumber Company Murat ÖZTAŞ Overview Clarkson Lumber is a company that has been experiencing rapid growth in sales; thus facing a problem of cash shortage to continue its expected growth. Even though Mr. Clarkson was able to manage to have low operating expenses while running the business, the cash flow crisis is coming. Besides the urgent need for cash to recover the liquidity of the company, the owner, Mr. Clarkson has to pay back the note payable (with %11 interest) his former partner’s interest, which he bought out for $200.000 in 1994. Clarkson Company is not generating enough profit to pay off its debt in required amount of time. The financial statements and analysis ratios both indicate that the company is doing well.
Assignment #2: CROSBY MANUFACTURING CORPORATION Executive Summary Crosby Manufacturing Corporation is a $ 250-Million-a-year electronics component manufacturing firm. Wilfred “Willy” Livingston became president in 2005, and in his long-range plan to obtain large government contracts, laid into two acts, which the first step consisted of the restructuration of the 700 employees organization into a modified matrix structure. And on October 2007, the second phase consisted of changing the computer system into a more advance model in order to update the management cost and control system( MCCS) to ensure the growth of Crosby Manufacturing Corporation. He violated the policy and appointed Tim Emary as a project manager, an employee from the group planning department, only because in his vision Tim Emary can lay out a schedule and have the job done. 1.
Sam and Helen put together 95% of the funds for this first store in Rogers, Arkansas (Wal-Mart). Sam’s previous experience taught him the ins and outs of purchasing for a retail market. He had a notion that if he could pass on the savings to his customers that he received from purchasing deals, then he could corner a market based on low prices and increase his profits through bulk or volume selling at these low prices. This idea was an instant success, and is the foundational business strategy for Wal-Mart. Immediate Growth By 1967 Wal-Mart had 24 stores in Arkansas, but the Walton brothers had a much bigger vision.
Mr. Clarkson was an energetic and hard working man, has personal control over every feature of his business and he possesses sound judgment about his business issues. Mr. Clarkson was actively looking for a new banking relationship where he can negotiate a larger loan than his recent limited loan ceiling ($400,000) offered by Suburban National Bank. He approached Northrup National Bank for a larger loan and the bank had to investigate his financial position, business historical sales and expenses, future forcastes and the owner credibility. Clarkson Lumber is planning to borrow an increasing amounts despite its profitability because he wants to pay off Mr. Holtz in order for himself to become the primary owner of the company. Mr. Clarkson also needs to take a loan so he could
Ford also announced that it would distribute ownership of its Visteon Corp. parts unit to shareholders. Ford’s share price had performed poorly over the previous year (Exhibit 1), and the proposal drew a positive reaction from analysts who had been urging the company for months to distribute cash to stockholders. Some hailed the VEP as the boldest step yet by Ford Chairman William Clay Ford Jr. and Chief Executive Officer Jacques Nasser to convince investors that they were undervaluing the world’s No. 2 automaker. However, the plan raised a number of questions for investors.
Clarkson Lumber Company Clarkson Lumber Company is in retail distribution of lumber products. It was founded by Mr. Clarkson and his brother-in-law, Henry Holtz in 1981. In 1994, Mr. Clarkson bought out Mr. Holtz’s interest for $200,000, payable in 4 semi-annual instalments from June 30, 1995 with interest @11% p.a. Firm has achieved good growth in sales and profits during recent years, but is facing shortage of cash. It expects sales of $5.5 million during CY 1996 and would need additional loan over and above existing loan of $399,000 as on March 31, 1995.
A. B. Freeman School of Business Tulane University GMBA 726: Global Supply Chains Professor: James W. McFarland Team 4 Julian Aude Frank Letellier Lucas Iglesias Jaime Salamanca Javier Silva Maria (Maricruz) Torres Team Case Assignment Arauco (A): Forward Integration or Horizontal Expansion? January 6-9, 2009 Introduction The case is set in March 2004, Alejandro Pérez, President and CEO of Arauco, a very successful Chilean forestry company, was about to present his recommendations to the Board of Directors as to whether or not the company should invest US$1 billion to construct a new state-of-the-art chemical pulp plant. This plant would increase Arauco´s capacity by approximately 850,000 tons to 3.2 million tons, placing the company as the largest producer of market pulp. The plan to build this plant was part of a project called “Nueva Aldea”, whose first phase was approved by the board in 2002.
The income statement’s total revenues doubled in two years due to their unusual growth. The problem to behind income statement and balance sheets stems from their company owned and franchised factories; instead of selling the donuts, the company sold machinery to make their products. The goodwill and required franchise rights doubled each year until 2004 which raised questions and concerns as to whether Krispy Kreme improperly implemented accounting treatments. Compared to the industry, Krispy Kreme was apparently a very high performing company, but we questioned the performance data. 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.
Disney shares jumped 84 cents, or 2.5 percent, to $34.57 in after-hours trading. The shares gained 44 cents to end the regular trading session at $33.73 before the earnings were announced. Tourists from abroad also took advantage of the weak dollar, increasing park attendance and spending. Resort revenue grew 11 percent to $2.73 billion, and hotel bookings at the resorts through 2008 were trending higher than last year, the company said. "We're definitely benefiting from the dollar weakness ... in two ways," Chief Executive Robert Iger told analysts on a conference call.
Running head: Dollar General 1 Dollar General Columbia College RUNNING HEAD: Dollar General 2 Dollar General Dollar General is the leader when it comes to discount dollar stores with an annual profit of more than $12.73 billion a year. The major competition in the dollar discount stores for Dollar General in order are Family Dollar and the Dollar Tree. Another key player in discount stores is Walmart, although not a dollar discount store Walmart dominates all markets with $419.24 billion in revenue. 2011 brought on a year of expansion for Dollar General with plans to open up 650 new stores and remodel another 550 creating 6.000 new jobs in additional employees. Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General.