...In early July 1978, W. L. Lyons Brown, Jr., president and chief executive officer of Brown-Forman Distillers Corporation, faced an important acquisition decision. The principal owners of Southern Comfort Corporation had approached Brown in May with an offer to sell the company at a price of $94.6 million. In preparing his response, Brown was evaluating the feasibility of the asking price and the likely effects of the acquisition on Brown-Forman’s share price. As a leading producer, marketer, and importer of wines and distilled spirits (including the well-known Jack Daniel’s brand), Brown-Forman ($457 million net sales) was the fifth-largest distiller in the United States, after National Distillers ($586 million), Seagram ($2,018 million), Heublein ($839 million), and Hiram Walker ($875 million). How Brown had chosen to position Brown-Forman among its competitors would affect the appraisal of Southern Comfort. Brown-Forman: Financial Goals and Performance In 1977, Brown-Forman’s management adopted new long-range financial goals regarding: (1) hurdle rates for investment; (2) size of the capital budget through 1980; (3) target capital structure; and (4) dividend payout. The primary objective of these goals was to “increase the value of the stockholders’ investment.” The dividend payout ratio (all dividends paid divided by net income) was targeted at a range of 30% to 35%. Planned investment during the 1978 to 1980 period included $86 million for advertising and...
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...NEW RESEARCH Does ADHD Predict Substance-Use Disorders? A 10-Year Follow-up Study of Young Adults With ADHD Clancey Bateman, Timothy E. Wilens, B.A., M.D., MaryKate Martelon, M.P.H., Gagan Joshi, M.D., Ronna Fried, Ed.D., Carter Petty, M.A., Joseph Biederman, M.D. Objective: High rates of substance-use disorders (SUD) have been found in samples of adolescents and adults with attention-deficit/hyperactivity disorder (ADHD). Predictors of SUD in children with ADHD who are at risk for the development of SUDs remain understudied. The main aims of this study were to identify clinically meaningful characteristics of children that predicted the future development of SUDs and to see whether the role of these characteristics varied by sex. Method: Subjects were children and adolescents with (n 268; mean age standard deviation 10.9 3.2 years) and without (n 229; mean age 11.9 3.3 years) DSM-III-R ADHD followed prospectively and blindly over a 10-year follow-up period onto young adult years. Subjects were assessed with structured diagnostic interviews for psychopathology and SUDs. Results: Over the 10-year follow-up period, ADHD was found to be a significant predictor of any SUD (hazards ratio 1.47; 95% confidence interval 1.07–2.02; p .01) and cigarette smoking (2.38; 1.61–3.53; p .01). Within ADHD, comorbid conduct disorder (2.74; 1.66 – 4.52; p .01) and oppositional defiant disorder (2.21; 1.40 –3.51; p .01) at baseline were also found to be significant predictors of SUDs...
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...Analysis……………………………………………………………………………. 4 Historic Financial Analysis……………………………………………………………….. 5 Weighted Average Cost of Capital……………………………………………………….. 6 Financial Statement Analysis……………………………………………………………… 7 Bond Valuation I……………………………………………………………………………. 10 Bond Valuation II…………………………………………………………………………… 11 Stock Analysis……………………………………………………………………………….. 11 Off-balance Sheet Items……………………………………………………………………. 12 Revenue and Earnings Growth Analysis…………………………………………………. 12 Conclusion……………………………………………………………………………………. 13 Exhibit I……………………………………………………………………………………….. 14 References…………………………………………………………………………………….. 15 Business Description Below are some fast facts regarding Netflix and a quick history snapshot. |Fast Facts | |Founded |1997 | |Location |Los Gatos, CA | |Industry Sector |Internet Television Network | |NASDQ Symbol |NFLX | |Number of Employees |900 | |Key Personnel ...
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...selective student population Tatiana V. Kornilova, Sergey A. Kornilov ⁎, Maria A. Chumakova Department of Psychology, Moscow State University (Lomonosov University), Mokhovaya St., 11/5, 125009, Moscow, Russian Federation a r t i c l e i n f o a b s t r a c t The study examined the relationship between implicit theories, goal orientations, subjective and test estimates of intelligence, academic self-concept, and achievement in a selective student population (N =300). There was no direct impact of implicit theories of intelligence and goal orientations on achievement. However, subjective evaluations of intelligence and academic self-concept had incremental predictive value over conventional intelligence when predicting achievement accounting for more than 50% of its variance. The obtained pattern of results is presented via structural equation models and interpreted within a dynamic regulative systems framework suggesting the importance of further studying complex sets of achievement predictors that include ability, personality and mediating constructs. © 2009 Elsevier Inc. All rights reserved. Article history: Received 12 November 2007 Received in revised form 7 August 2009 Accepted 10 August 2009 Keywords: Achievement Implicit theories Intelligence Subjective evaluations Academic self-concept 1. Introduction A vast literature exists on predicting and explaining learning activity and academic achievement with numerous studies attempting to reveal the predictive value...
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...strategy can provide prosperity for a company while a poor strategy can result in dire consequences. The study also highlights how factors such as company size, economic conditions, competition, and corporate culture influence the development and the ultimate success of the business strategy. AMP Incorporated was used as the basis for this case study. AMP Incorporated is a global company that specializes in electronic and electrical connectors. The company, which was started in 1941, quickly grew into the world’s largest manufacturer of connector and interconnection devices. But in 1998, the company’s stock fell, resulting in a hostile takeover bid by Allied Signal and the eventual purchase of the company by Tyco International. History of AMP Founder of AMP Born in Lincoln, Kansas in 1900, Uncas Aeneus Whitaker grew up in a tiny southwestern town in Missouri. He was named after the hero of James Fenimore Cooper’s classic tale, The Last of the Mohicans. In the fall of 1941, Whitaker would start his quest to live the legacy of a hero by taking over a small firm called Industrial Manufacturers in Elizabeth, New Jersey. Industrial Manufacturers was a producer of solderless electrical terminations for the aircraft and shipbuilding industry. Prior to World War II, terminations of electrical conductors were accomplished by twisting wires together by soldering, brazing, or wrapping them around screws. U. A. Whitaker, an electrical engineer by trade, developed a system...
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...to publications on ResearchGate, letting you access and read them immediately. Available from: Bridget K. Behe Retrieved on: 07 February 2016 Journal of Retailing and Consumer Services 24 (2015) 10–21 Contents lists available at ScienceDirect Journal of Retailing and Consumer Services journal homepage: www.elsevier.com/locate/jretconser The effect of involvement on visual attention and product choice Bridget K. Behe a, Mikyeung Bae b,n, Patricia T. Huddleston b, Lynnell Sage a a Department of Horticulture, Michigan State University, East Lansing, MI, USA; Department of Advertising and Public Relations, Michigan State University, East Lansing, MI, 48824, USA b art ic l e i nf o a b s t r a c t Article history: Received 28 March 2014 Received in revised form 19 January 2015 Accepted 20 January 2015 Available online 4 February 2015 Our study examined the effect of consumers' level of involvement on visual attention to product, information sign and price sign guided by the Elaboration Likelihood Model (ELM). We also investigated the relationship between visual attention captured by eye fixation on information and price sign and...
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...LONG TERM PERFORMANCE OF VALUE VS. GROWTH STOCKS: EVIDENCE FROM INTERNATIONAL MARKETS Zugang Liu, Pennsylvania State University Hazleton, USA Jia Wang, Rowan University, Glassboro, NJ, USA ABSTRACT This paper studies the long-term risk and return characteristics of value stocks versus growth stocks for three international markets: Asia, Scandinavia, and Europe. We focus on the downside of returns and use Value at Risk as our risk measure. We find that value stocks outperform growth stocks in terms of both risks and returns across all time horizons for all three markets. We further conduct cross country analysis. Interestingly, we find that there is some risk and return trade off in short term investment horizon across the three countries. When investment horizon lengthens, Scandinavian market has the best performance in both risks and returns for both value and growth indexes. Keywords: Value, Growth, Risk, Time Horizon 1. INTRODUCTION Value or growth? This is an age old debate in the investment world. Value style stock commonly refers to a stock that is undervalued relative to its fundamentals (i.e. dividends, earnings, sales, etc) and often has a low market to book ratio, a high dividend yield or a low P/E ratio. Growth style stocks are often shares from companies that are expected to grow at a higher than average rate and such stocks often have high market to book ratios, low dividend yields or high P/E ratios. Which one is more profitable? Basu (1977), among others, reports...
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...© Academy of Management Journal 1996, Vol. 39, No. 3. 519-543. THE RESOURCE-BASED VIEW OF THE FIRM IN TWO ENVIRONMENTS: THE HOLLYWOOD FILM STUDIOS FROM 1936 TO 1965 DANNY MILLER Ecole des Hautes Etudes Commerciales, Montreal, and Columbia University JAMAL SHAMSIE New York University This article continues to operationally define and test the resourcehased view of the firm in a study of the major U.S. film studios from 1936 to 1965. We found that property-hased resources in the form of exclusive long-term contracts with stars and theaters helped financial performance in the stable, predictable environment of 1936-50. In contrast, knowledge-based resources in the form of production and coordinative talent and budgets boosted financial performance in the more uncertain (changing and unpredictable) post-television environment of 1951-65. The resource-based view of the firm provides a useful complement to Porter's (1980) well-known structural perspective of strategy. This view shifts the emphasis from the competitive environment of firms to the resources that firms have developed to compete in that environment. Unfortunately, although it has generated a great deal of conceptualizing (see reviews by Black and Boal [1994] and Peteraf [1993]), the resource-based view is just beginning to occasion systematic empirical study (Collis, 1991; Henderson & Cockburn, 1994; Montgomery & Wernerfelt, 1988; McGrath, MacMillan, & Venkatraman, 1995). Thus, the concept of resources remains an...
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...i c l e i n f o a b s t r a c t In this paper we address the bankruptcy prediction problem and outline a procedure to improve the performance of standard classifiers. Our proposal replaces traditional indicators (accounting ratios) with the output of a so-called multinorm analysis. The deviations of each firm from a battery of industry norms (computed by nonparametric quantile regression) are used as input variables for the classifiers. The approach is applied to predict bankruptcy of firms, and tested on a representative data set of Spanish firms. Results indicate that the approach may provide significant improvements in predictive accuracy, both in linear and nonlinear classifiers. Ó 2011 Elsevier B.V. All rights reserved. Article history: Received 9 February 2011 Received in revised form 2 October 2011 Accepted 3 November 2011 Available online 30 December 2011 Keywords: Bankruptcy prediction Classification techniques Nonparametric methods Quantile regression Accounting ratios 1. Introduction Under the current economic conditions, bankruptcy early warning systems have become tools of key importance in order to guarantee the stability of the economy, as a consequence of their potential to avoid losses to stockholders, creditors, managers and other interested parties. The passing of the Basel II accord makes the need for accurate systems to predict financial distress even stronger, as this agreement establishes that the reserve capital of banks will directly depend on the...
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...MANAGEMENT CASE describes a real-life situation faced, a decision or action taken by an individual manager or by an organization at the strategic, functional or operational levels Reinventing a Giant Corporation: The Case of Tata Steel D V R Seshadri and Arabinda Tripathy A KEY WORDS Reinvention Change Management Turnaround Tata Steel Liberalization Response to Globalization t the meeting of the senior management of Tata Steel to celebrate the spectacular performance of the company, Mr. B Muthuraman, the Managing Director, recalled with satisfaction the remarkable strides that the company had made from the difficult days in the early nineties, when the company, used to a protected environment, was suddenly thrown open to global competition, consequent to the liberalization of the Indian economy. The company had closed the year with a record profit of Rs. 34.74 billion. A series of initiatives launched by the company over the last 15 years had culminated in these stellar results although there were many challenges at every step. At each stage in its journey, the company did what needed to be done. In retrospect, however, the various initiatives launched by the company over the years now appeared to fit into a coherent picture. The company had made steady progress over the years and had now achieved a pre-eminent status in the Indian steel industry. It had become one of the lowest cost steel producers in the world five years ago, a distinction that it had continued...
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...87 2004 by JOURNAL OF CONSUMER RESEARCH, Inc. ● Vol. 31 ● June 2004 All rights reserved. 0093-5301/2004/3101-0008$10.00 The Effects of Brand Relationship Norms on Consumer Attitudes and Behavior PANKAJ AGGARWAL* The key premise underlying this work is that when consumers form relationships with brands they use norms of interpersonal relationships as a guide in their brand assessments. Two relationship types are examined: exchange relationships in which benefits are given to others to get something back and communal relationships in which benefits are given to show concern for other’s needs. The conceptual model proposes that an adherence to or a violation of these relationship norms influences the appraisal of the specific marketing action and also the overall brand evaluations. Results of three experiments provide converging evidence in support of the theory. Branding and brand-based differentiation are powerful means for creating and sustaining competitive advantage. Prior research has examined differences in how consumers perceive and evaluate brands, for example, through investigating brand equity (Keller 1993; McQueen, Foley, and Deighton 1993), brand personality (Aaker 1997; Plummer 1985) and brand extensions (Aaker and Keller 1990; Nakamoto, MacInnis, and Jung 1993). More recently, researchers have noted that consumers differ not only in how they perceive brands but also in how they relate to brands (Fournier 1998; Muniz and O’Guinn 2001). This...
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...The Effects of Brand Relationship Norms on Consumer Attitudes and Behavior PANKAJ AGGARWAL* The key premise underlying this work is that when consumers form relationships with brands they use norms of interpersonal relationships as a guide in their brand assessments. Two relationship types are examined: exchange relationships in which benefits are given to others to get something back and communal relationships in which benefits are given to show concern for other’s needs. The conceptual model proposes that an adherence to or a violation of these relationship norms influences the appraisal of the specific marketing action and also the overall brand evaluations. Results of three experiments provide converging evidence in support of the theory. B randing and brand-based differentiation are powerful means for creating and sustaining competitive advantage. Prior research has examined differences in how consumers perceive and evaluate brands, for example, through investigating brand equity (Keller 1993; McQueen, Foley, and Deighton 1993), brand personality (Aaker 1997; Plummer 1985) and brand extensions (Aaker and Keller 1990; Nakamoto, MacInnis, and Jung 1993). More recently, researchers have noted that consumers differ not only in how they perceive brands but also in how they relate to brands (Fournier 1998; Muniz and O’Guinn 2001). This line of research has suggested that people sometimes form rela- *Pankaj Aggarwal is an assistant professor of marketing at the Division of...
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...Journal of Accounting and Economics 55 (2013) 206–224 Contents lists available at SciVerse ScienceDirect Journal of Accounting and Economics journal homepage: www.elsevier.com/locate/jae Cost of capital and earnings transparency$ Mary E. Barth a,n, Yaniv Konchitchki b, Wayne R. Landsman c a Graduate School of Business, Stanford University, Stanford, CA 94305, USA Haas School of Business, University of California at Berkeley, Berkeley, CA 94720, USA c Kenan-Flagler Business School, University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA b a r t i c l e in f o abstract Article history: Received 22 December 2008 Received in revised form 19 November 2012 Accepted 23 January 2013 Available online 1 February 2013 We provide evidence that firms with more transparent earnings enjoy a lower cost of capital. We base our earnings transparency measure on the extent to which earnings and change in earnings covary contemporaneously with returns. We find a significant negative relation between our transparency measure and subsequent excess and portfolio mean returns, and expected cost of capital, even after controlling for previously documented determinants of cost of capital. & 2013 Elsevier B.V. All rights reserved. JEL classification: D8 G12 M4 M41 Keywords: Cost of capital Earnings transparency 1. Introduction This study provides evidence that firms with more transparent earnings enjoy a lower cost of capital. Firms with more transparent earnings are those whose earnings...
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...Panera Bread Company – History In 1978, Louis Kane purchased Au Bon Pain, a fast casual restaurant that focused on artisan breads. Kane merged Au Bon Pain with Ronald Shaich’s company The Cookie Jar in 1981. Au Bon Pain, looking to move away from their urban niche market, acquired the St. Louis Bread Company in 1993, a 19 store company with a more suburban marketplace. In 1999, after performing market research and studying their newly acquired bakery-concept, the company decided to sell Au Bon Pain and form a new concept, Panera Bread. (Panera Bread Company Overview, 2013) Panera Bread Company - Business Description Panera Bread Company (Panera Bread) is a national bakery-cafe concept involved in providing bakery products through a network of bakery-cafes. It is one of the largest food service companies in the US, serving over seven million customers per week system-wide. Its products are freshly baked goods which include a diverse selection of bagels, breads, muffins, scones, rolls, and sweet goods, made-to-order sandwiches, unique soups and side items, hand-tossed salads, and custom roasted coffees and cafe beverages, including hot or cold espresso, cappuccino drinks and smoothies. The company operates under the trademarked names Panera Bread, Saint Louis Bread Co. and Paradise Bakery & Cafe. Panera Bread operates through three business segments, namely, Company Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. The Company...
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...English Wine Week Direct and Digital Marketing Plan Team Sunflowers - Team code 2114-03. Team code 2114-03. Executive Summary For English Wine Producers we propose the following objectives to get the most out of their English Wine Week: • • • • Increase the number of visitors attending the vineyards during the week To sell at least 65,000 bottles throughout the week To create a functional database upon which consumer data can be used in the future Increase awareness of the week through promotional activities A specific action plan is set to meet the objective targets. All activities will be through off-trade retailers and targeting consumers in the ABC1 categories predominately in the South East of England. Due to targeting these consumers we aim to create a premium perception of our product to take advantage of slumps in sales of Champagne. We aim to generate a vibe of interest from our campaign, advertising and events in which people want to get more involved with wine and events orientated around it. For instance through our created app GPS will locate local wine events, vineyards and merchants that sell English wine, and customers will be able to use this at will. Currently English wine have 1785 consumer details from details given to them from vineyards. Database software will be purchased so that EWP can collect data from their consumers so that in the future they are able to retain the consumers. The media which will be used has been selected as we feel that...
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