...would suffer from bottling an inferior wine, while C denotes the cost saving from not bottling your own wine, should you choose to sell in bulk. Assuming the information you gave me is correct (more on this later), R and C are irrelevant to the problem. Given the information you provided, it seems safe to assume that C < $15, 000.∗ Even assuming the worst, R ≥ $12, 000 and C = $0, the option of waiting has a greater expected value than the decision to harvest now: $35,640 versus $34,200.† If the worst is not true (i.e., R < $12, 000 or C > $0), the the option of waiting is even more valuable. Consequently, unless you strongly dislike risk, you should wait to harvest. Your expected gain from waiting is at least 4% (worst-case scenario). If the very best-case scenario in which the node (labeled as ①) is worth $28,200 (see Technical Appendix for underlying calculations), your expected gain would be at least 18%. Because your winery is a partnership rather than a stock firm, I assume that risk is an issue for you. On the other hand, Riesling represents only 4% of your ∗ Otherwise, you not find it profitable to produce a $2.50 bottle of wine should the storm not occur and the acidity drops below 0.7%. † I provide details in the attached technical appendix. Copyright c 2004...
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...neighbour’s nuclear arming) is flawed. His argument is further consolidated by virtue of the fact that the fear of rapid nuclear proliferation has been vociferously audible in Western media almost every year since the 1960s, yet the world possesses only nine nuclear powers.24 Leaving this convincing argument to one side, would a nuclear Iran provoke proliferation in the Middle East? Sagan’s aforementioned three theories assume that a state has the ability and the opportunity to develop a weapon.25 By inserting such a caveat we can eliminate numerous states from this predictive analysis of proliferation in the region. Whilst existing nuclear powers (China and Pakistan for example) may be willing to suffer international condemnation for the provision of nuclear technology to a strong regional player (perhaps Saudi Arabia) in return for the “strategic prize of security ties”, they are highly unlikely to do so for minor actors (Bahrain, Qatar, Kuwait etc.) – irrespective of the ability of such states...
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...Case Scenario: Big Time Toymaker LaTeisha Allen LAW/421 March 9, 2015 Professor Angela Beetem Case Scenario: Big Time Toymaker At what point, if ever, did the parties have a contract? Both parties, Big Chou and Big Time Toymaker, entered a verbal contract which was created to the distributing a game strategy created by Chou. This contract is considered valid in that both parties were clear and met the contract requirements which a follow-up email was sent to Chou that outlined the details of what was agreed upon verbally. What facts may weigh in favor of or against Chou in terms of the parties objective intent to contract? There are several factors that weigh in favor of Chou in terms of the parties’ objective intent to the contract. First, BTT demonstrated the intent to enter a contract with Chou by offering to pay $25,000 for the exclusive distribution rights. Second, the email sent to Chou by BTT is evidence that the company was trying to solidify their oral agreement in writing. Lastly, is that Chou never secured a contract in writing with BTT. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 – 2? Absolutely, the fact that both parties were communicating through email makes this situation complicated. However, it is possible to enter a written agreement via email. Considering that Chou responded via email to BTT after their oral agreement had been reached will most definitely hold significant weight in...
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...decision. The report contains the analysis of the situation, the options available, my recommendation and an action plan. The recommendation has been arrived at by evaluating the options based on criteria which are aligned with the company’s objectives. Please find attached the report. Enclosure: Report EXECUTIVE SUMMARY Vickers Industrial Supplies has requested for a distributorship and a pricing discount as it fulfils the Bolster’s criteria of a distributor. This dealer is important for Bolster so as to maintain a strong hold in the northern Alberta region. While this idea of giving a distributorship to Vickers might not be acceptable to the two national distributors of Bolster. Bolster is faced with two options of either granting a territorial distributorship of northern Alberta to Vickers with a restriction on the region covered or maintaining a status quo and not granting the distributorship to Vickers. The choice has to be evaluated on the basis of financial impact, impact on the relationship with existing distributors and the impact on the relationship with Vickers. Upon evaluation with respect to these criteria, it is recommended that the Vickers is granted a distributorship in northern Alberta. (Word Count: 142) Contents Executive Summary iii Situation Analysis 1 Problem Statement 2 Options 2 Criteria for Evaluation 3 Evaluation of Options 3 Recommendation 4 Action Plan 4 Exhibit 5 SITUATION ANALYSIS Vickers Industrial Supplies (Vickers)...
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...Marketing of Logistics Services Term Paper on “A Study on Customer Perception about Professional Courier Services” Title of the study: This project is based on the topic ”A study on customer perception about the professional courier services ". Introduction: The Courier services in India have been growing considerably in recent years. This has resulted in the entry of many multinational courier company and consequently cut throat competition. In the changing scenario of modernization and sophistication it is very important and essential to invent and implement better marketing plans in order to improve quality of the services. Thus marketing success largely depends on the ability to anticipate buyer’s needs. Presently a great deal of awareness has been created in studying customer preference. Professional courier is one of the leading courier services in India. The study is undertaken to analyze customer perception about the Professional courier services. The study concentrates customer preference of Professional couriers as many of its competitors are offering similar services and features to satisfy customer needs and wants. Need of the study Customer is the king in the market. How to satisfy them is a big problem for every company. In order to know how customers could be satisfied, the need for the study arises: * How well the customer accept a...
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...is a new and better jet to be made. However, with times they way they are, it is extremely risky to embark on an endeavor of this magnitude and not be successful. We have put together a study and recommendation that should assist you in your decision in whether or not to grant final approval to proceed with the project. Although significant investments are required to develop the Boeing 7E7, a competitive advantage cannot be achieved with the Company’s current product scope. Therefore, due to the IRR being higher than the commercial segment’s WACC as well as the need to achieve a competitive advantage in the market, we believe the project should be undertaken. #18 and The Force Executive Summary Due to the above quantitative analysis, it is evident that the project is beneficial to the company. However, several other issues should be taken into consideration before the Board of Directors’ make their final decision. A positive factor is the ability to achieve customer satisfaction as the aircraft will provide 20% less fuel costs than any other plane in its size. There is flexibility of short or long flights and Boeing 7E7 has enhanced passenger features. This will increase the demand for the airplane as customers will face lower operating costs, increased flexibility and will be better able to satisfy their market share. There is a projected rate of annual increase in air travel of 5.1%. This growth in the industry will increase revenues for the commercial segment as...
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...Justin Goldberg 10/22/14 Case: Palm Towers Introduction: Basis of the case is… This case is used to solve the problem of determining how much this company (the National Tower Company) should bid for the Palm Tower, if anything at all. Contrary to many of the other cases, this case is not a case of make or break. Alternatively, this is clearly a situation of a want and not a need, as CATO is mentioned nowhere here. It becomes evident from the beginning of the case that this is definitely a tower that comes with an abundance of value. In fact, the majority of working on this case is basically a forecast showing how much profit this investment could potentially provide. We would recommend just by previewing the case a bit that a bid should be made that is near the likely competitive forecast value for there are a few other rival companies that are very successful at the moment and will likely bid as well. The industry for these towers right now is a very competitive one as previously mentioned, this is because across the globe there are 6 billion cellular users who most of are in the process of upgrading from either 2g to 3g or 3g to 4g/LTE. This is useful information to keep in mind for the case because we try to forecast growth for this tower, which is currently sitting at 17% for a year-by-year basis, which is quite high compared to most other industrial growth averages. Unfortunately, while these major cellular companies are bringing in a majority share of the rent, numerically...
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...Case Study Analysis: Lufthansa: To Hedge or Not to Hedge… By Mathew Stubbs and Michael Homewood In January 1985, Lufthansa, a German airline company procured twenty new 737 airplanes from Boeing. Under the chairmanship of Heinz Ruhnau, a price of US$500 million was negotiated. The agreed price was payable in United States Dollars (USD) upon delivery of the aircraft in one years time, on January 1986. Since Lufthansa’s operating revenues were primarily in Deutsche Marks (DM), Ruhnau needed to determine an appropriate solution to minimize the resulting foreign exchange risk. In the year preceding the expansion purchase, Lufthansa was experiencing periods of extensive growth. In 1984, the company experienced an overall increase in passenger and freight volume of seven and seventeen percent respectively. This increase in volume resulted in a 7.14% increase in revenue to US$4.5 billion, and a 134.78% increase in net profits to US$54 million. At the time, significant speculation had been surrounding the value of US dollar and its anticipated direction. By January 1985, the US dollar was at record levels against other currencies (See Exhibit 1), and the state of the interest rate differential between the US and Germany suggested it would steadily increase (See Exhibit 2). The sustained strength of the US dollar, combined with the booming US economy influenced people to believe the dollar would continue to appreciate. During this period of time, central bankers from the G-7 countries...
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...Case Study Analysis: Lufthansa: To Hedge or Not to Hedge… By Mathew Stubbs and Michael Homewood In January 1985, Lufthansa, a German airline company procured twenty new 737 airplanes from Boeing. Under the chairmanship of Heinz Ruhnau, a price of US$500 million was negotiated. The agreed price was payable in United States Dollars (USD) upon delivery of the aircraft in one years time, on January 1986. Since Lufthansa’s operating revenues were primarily in Deutsche Marks (DM), Ruhnau needed to determine an appropriate solution to minimize the resulting foreign exchange risk. In the year preceding the expansion purchase, Lufthansa was experiencing periods of extensive growth. In 1984, the company experienced an overall increase in passenger and freight volume of seven and seventeen percent respectively. This increase in volume resulted in a 7.14% increase in revenue to US$4.5 billion, and a 134.78% increase in net profits to US$54 million. At the time, significant speculation had been surrounding the value of US dollar and its anticipated direction. By January 1985, the US dollar was at record levels against other currencies (See Exhibit 1), and the state of the interest rate differential between the US and Germany suggested it would steadily increase (See Exhibit 2). The sustained strength of the US dollar, combined with the booming US economy influenced people to believe the dollar would continue to appreciate. During this period of time, central bankers from the G-7 countries...
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...Oil and the U.S. Macroeconomy Prepared by: Thao Nguyen Arizona Western College November 11, 2008 ARTICLE REVIEW December 2001, the average oil price was $19.33. After a brief decline from $74 to $55 per barrel in January 2007, it then resumed its price to $90 per barrel in October 2007. Participants and traders couldn’t foresee the sharp rise in price; however, some economist and analysts correctly predicted the price would go over $100 per barrel and US economy to fall into recession. In his article named “Oil and the U.S. Macroeconomy: An Update and a Simple Forecasting Exercise”, Kliesen shows that if the price of crude oil is permanently increasing to either $100 or $150 per barrel would cause a modest slowing in real gross domestic products (GDP) growth and its major components relative to base line forecast without oil price. The result of this could be somewhat very important due to the weak GDP growth over the first half of 2008. Besides that, in the article, the model which the author use also predict an inflation of 4 percent in 2009 if the price of crude oil rises up to $150 per barrel. From there, forecasters, macroeconomists, financial market participants, and public policy makers always see oil price shock as an early warning because nearly all recession in post-World War II was accompanied by increase in oil price. An oil price shock is typically a large unexpected increase in the relative price of energy that affects the economic decisions...
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...the U.S. faces in the Middle East, as religious (Islam vs. the West) or economic (the developed West vs. the developing Middle East), or a clash of cultures, or some other form not as yet identified1. The hope was that by developing an understanding of the origins of the conflict, we would develop some insights into the form of the conflict and its duration; this in turn would lead to an understanding of the business implications that might result and strategies that might provide appropriate responses in different strategic contexts. We faced a high level of uncertainty about what had happened and what was likely to happen next, which determined the structure of our workshop. Recent events continue to underscore the importance of this analysis. Defeating the Taliban may not solve our problems with Al Qaeda. Defeating the Iraqi Army may not solve our problems in Iraq. The strategies that work best will be determined by a 1 The group found it extremely difficult to determine how to characterize the conflict....
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...Introduction A business plan is a formal document indicating a set of company goals, the plan for achieving those set goals and a description why the management believe that those goals are attainable and etc. Its primary value is to evaluate the viability of the potential projects and to analyze the business prospects. It may also contain background information about the company such as mission, vision and how suitable and feasible the project is, to the company. Business plans may also target changes in perception and branding by the customer, client, taxpayer, or larger community. A business plan will be useful to a company in many ways. Firstly it will clearly identify and focus the company objectives using suitable information and analysis. Also it can be used as a selling tool when dealing with lenders, investors and banks. A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and accurate, and keeping it up-to-date, is an investment that pays big dividends in the long term. Business planning is very significant because it is the first step toward success in your business venture. From obtaining funding to hiring employees to planning for expansion, a business plan can be your guide to keeping your business on track. Your business plan can keep you focused on your goals and keep you moving forward. II. Body Successfully launching...
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...Scenario: The problem that will be taken into consideration is this Task will be the case of a logistics company called AZE that has an important employee satisfaction problem. Most of their employees leave during their first year and most of them say that they are not satisfied with their overall job and environment. The objective of this task would be to find what are the reasons that cause this highly depreciated rate. 1. d) Create a plan for the collection of primary and secondary data for a given business problem. They are two types of sources that can be used when conducting a research: Primary and Secondary. Primary sources give first-hand results that are provided by a research or study directed specifically for the case in question. Secondary sources usually interpretation or an analysis of a primary source. In the case of AZE, the usual sequence would be to start by searching for potential reasons for the low employee satisfaction, in other words secondary sources to reduce the range of possibilities. Internet and Books are usually the best secondary sources to start the search. The next step for AZE would be to focus on primary sources that provide more accurate and relevant information. AZE has already identified the main problem by interviewing the employees that actually left the firm. After acknowledging the employee satisfaction issue, AZE has to conduct a survey that will give them a closer insight on the reasons why the employees are not satisfied...
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...Organizational Systems and Quality Leadership Task 2 Jill Riccobono Western Governors University Organizational Systems and Quality Leadership Task 2 A. Root Cause Analysis A root cause analysis (RCA) looks at an event and considers what happened, why it happened what will be done to prevent it from happening again and how will we know that the changes made will improve the safety of the system. It takes into consideration causative factors, errors and hazards that led to a sentinel event. In this case it was a patient’s death. RCA should not look to place blame on people, but rather processes that need to be improved. The first step in a RCA is to identify what happened. In the scenario, presented in this task, the patient was over sedated and subsequently died. Step two is to identify why this happened. There were preventable causative factors, or errors, that led to this sentinel event. The hospital’s conscious sedation policy requires that the patient remains on continuous BP, ECG, and pulse oximeter throughout the procedure and there was no mention that this was performed at all throughout the procedure. It was not until after the procedure that Mr. B was placed on continuous BP and pulse oximeter, and at that time, the patient was left in the room, with only a family member while Nurse J attended to another patient. When the alarm is heard that the patient has low O2 sats, the LPN, enters the room and resets the alarm and repeats the B/P reading. His oxygen level...
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...systematic appraisal is to achieve better spending decisions for capital and current expenditure on schemes, projects and programmes. This document provides an overview of the main analytical methods and techniques which should be used in the appraisal process. These techniques can also be used in the evaluation process. More detailed information on individual techniques can found in financial and economic textbooks, examples of which are listed at the end of this document and in other guidance material on the VFM portal. An understanding of discounting and Net Present Value (NPV) calculations is fundamental to proper appraisal of projects and programmes. A good understanding of Cost Benefit Analysis (CBA), Internal Rate of Return (IRR), Multi Criteria Analysis (MCA) and Cost Effectiveness Analysis (CEA) is also essential for economic appraisal purposes. 2. Analytical methods The recommended analytical methods for appraisal are generally discounted cash flow techniques which take into account the time value of money. People generally prefer to receive benefits as early as possible while paying costs as late as possible. Costs and benefits occur at different points in the life of the project so the valuation of costs and benefits must take into account the time at which they occur. This concept of time preference is...
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