...American Greetings Exec Summary Tyler Reames October 14, 2013 American Greetings Executive Summary – FIN 3717 Executive Summary American Greetings is the second largest greeting card publisher in the U.S., behind Hallmark. The company is involved in retail and online sales. Hallmark is the main competition for American Greetings. In recent years, social media has caused a decline in the greeting card industry. Both American Greetings and Hallmark have begun creating electronic cards to take advantage of the digital revolution. Problem By the end of 2012, American Greetings was at the bottom of its peer group, with a low EV-EBITDA multiple, market-to-book below 1, a 6x PE ratio, and a share price of $12.51 that had dropped significantly in the months prior. American Greetings has historically used a share repurchase strategy in times of low equity. This is a good defense if the stock price is down temporarily, but the low valuation could also be a sign of larger trouble where it would be wise to preserve cash. Both S&P and Value Line anticipated modest growth for American Greetings in the coming years. Analysis We conducted an analysis for 2012 through 2015 to determine the value of the company. Our analysis began with calculating the operating cash flows (OCF = operating income * (1 – 0.4) - ∆NWC): Operating Cash Flow (millions) 2011 118 2012 83 2013 86 2014 88 2015 91 Operating Cash Flow (millions) 2011 118 2012 83 2013...
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...Tyler Reames October 14, 2013 American Greetings Executive Summary – FIN 3717 Executive Summary American Greetings is the second largest greeting card publisher in the U.S., behind Hallmark. The company is involved in retail and online sales. Hallmark is the main competition for American Greetings. In recent years, social media has caused a decline in the greeting card industry. Both American Greetings and Hallmark have begun creating electronic cards to take advantage of the digital revolution. Problem By the end of 2012, American Greetings was at the bottom of its peer group, with a low EV-EBITDA multiple, market-to-book below 1, a 6x PE ratio, and a share price of $12.51 that had dropped significantly in the months prior. American Greetings has historically used a share repurchase strategy in times of low equity. This is a good defense if the stock price is down temporarily, but the low valuation could also be a sign of larger trouble where it would be wise to preserve cash. Both S&P and Value Line anticipated modest growth for American Greetings in the coming years. Analysis We conducted an analysis for 2012 through 2015 to determine the value of the company. Our analysis began with calculating the operating cash flows (OCF = operating income * (1 – 0.4) - ∆NWC): Operating Cash Flow (millions) 2011 118 2012 83 2013 86 2014 88 2015 91 Operating Cash Flow (millions) 2011 118 2012 83 2013 86 2014 88 2015...
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...common stock is registered with the Commission pursuant to 12(b) of the Exchange Act [15 U.S.C. § 78l (b)] and traded on the New York Stock Exchange until December 19, 2002, when it was delisted. Kmart fiscal year ends the last Wednesday in January. Before filing for bankruptcy, Kmart operated approximately 2,100 stores throughout the United States and employed approximately 250,000 workers. Kmart's annual sales averaged $37 billion, and the company was the nation's second largest discount retailer and third largest general merchandise retailer. Its direct competitors were Wal-Mart and Target. This research paper will illustrate an accounting fraud committed by Kmart when improperly recognized as revenue a $42.3 million payment from American Greetings Corporation. Kmart negotiated a multi-year contract (5 years) for exclusivity rights and company’s policies and accounting procedures required that the $42.3 million be recognized over the term of the agreement. The litigation release No.18000, dated on February 26, 2003, states that the Securities and Exchange Commission (the SEC) filed a civil action against two former Officers of Kmart, Enio A. Mortini, Jr. Senior Vice President and General Merchandise Manager of Kmart’s Drug Store Division, and Joseph A. Hofmeister, divisional vice president of merchandising within the drug store division. The case was presented in the United States District Court for the Eastern District of...
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...Author’s Name: Instructor: Course: Date: Executive Summary Evaluating investments risks’ and potential return is crucial for investors’ as a way of establishing the expected return for their portfolios. In that respect, the analysis has used the Darden Case on American Greetings and the analysis on the Company as an investment has been done with use of DCF model that uses the present value of the expected future cash-flows. In addition, the analysis has been done using the future cash-flows for the years 2012 to 2015. The company’s WACC has been established to be 0.11% given the risk-free rate of 0.05% and the Market rate of 11%. With that consideration, the enterprise values for the two scenarios including a bullish and bearish scenario have been calculated as $659.41 and $546.43 respectively, but which are identified as lower than the 2011 value of $714. However, the values still reflect a higher value for the company’s stock compared to the 2011 market price of $12.51. Thus, the company is undervalued by the market at the 2011 and has potential for a rise towards its fair price. In addition, the company has a relatively better credit rating by the credit rating agencies being an indication of its relative low risk. In conclusion, the company’s stock has been identified as a buy, and its fair price for the year 2011 has been estimated to be $18.64. American Greetings Analysis Company value depends on a number of factors. Those factors include the capital structure...
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...be made include normal business hours in the host country, accepted cultural norms regarding gift giving, handshakes and business cards, and how women are regarded in the business world. This paper will address the cultural considerations that an American professional would need to make when conducting business in France, as well as a summary of Hofstede’s Dimensions of Culture for both countries. Negotiations Business negotiations in France tend to be very centralized and bureaucratic. Tradition is respected and given precedence over new ideas and formality is expected in all stages of business. During business negotiations, the French tend to ask very direct, detailed questions and expect adequate responses from their American colleagues. It is expected that all risks be identified early in the process and that they are all well-managed to avoid unnecessary complications. The French are also likely to repeat their main points when they have reached their conclusion, at which point changing their opinion or decision is very unlikely. Additionally, the business structure in France often requires initial negotiations to go through several stages of internal management for final approval (www.businessculture.org, n.d.). An American would need to be very tactful and logical when conducting business in France. It would also be important to remember that an initial approval or agreement does not necessarily imply that no changes will be required by an internal review. Business...
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...Country Cultural Practice Project of the Republic of Ireland MGT 604 Administrations, Globalization, & Multiculturalism Submitted by: Johnny D. Clark Project Instructor: Dr. Scott 14 Aug 2015 Executive Summary The Republic of Ireland consists of twenty-six counties and is located on the island of Ireland, along with Northern Ireland. Ireland is a parliamentary democracy, made up of three branches of government: the executive branch, the legislative branch and the judicial branch. The executive branch consists of the President, who is mostly there for ceremonial purposes, the Prime Minister, who is the head of the government, and the Deputy Prime Minister. The legislative branch consists of the House of Representatives and the Senate and the Judicial Branch consists of the Chief Justice and seven other judges. This paper goes over a brief look into the Republic of Ireland’s history, economy, their culture, and their business culture. In regards to their business culture, it offers advice into how to appropriately conduct business with Irish men and women. Country Analysis of the Republic of Ireland History Located to the west of Great Britain, sits the island of Ireland. The island is about 32,000 sq. mi. and is comprised of the Republic of Ireland and Northern Ireland, which is part of the United Kingdom (Holwell, 2001, para.2). The Republic of Ireland, which “occupies almost 85% of the total land-mass,” consists of twenty-six counties (Holwell...
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...Sarvajanik Education Society S.R. Luthra Institute of Management Semester III (805) Module V Case Study Class: Elective International Business (2830006) Faculty: Pratiksinh Vaghela A Report on Module V Case Study Presentation “Culture and Business in Saudi Arabia” Submitted by: Group No: () Sr. No. Enrollment number Name 1 148050592058 R. Suraj 2 148050592066 Azhar Shah 3 148050592077 Sunil Tiwari 4 148050592082 Kalpesh Vasova 5 148050592085 Jay Viththlani Subject: International Business (2830006) Submitted to: Mr. Pratiksinh Vaghela S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805 Summary Western enterprise wants to do their business in the Saudi Arabia but it was not easy to start the business in the Saudi Arabia. Western aerospace company (boeing and Lockheed) sold their aircraft in the Saudi Arabia in past year. Also from a decade now Saudi Arabia has open the foreign investment in certain sector but they had kept oil and gas sector for the foreign investment. Saudi Arabia is a conservative country where large segment of the population believe in the religious values and ancient tradition of region, due to this they spill over into the business sector. As a culture shape by Islam and Bedouin tradition. In 1744 after nomad and ibn abd-al-wahhab has implement which was expressed in the Quran and that law is applicable till today. If the foreign company want to do any business in the Saudi Arabia they had to...
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...Business Communication Customs in Canada Presented to Professor D. A. Beaudoin, MBA Prepared by Claude D. Brooks February 14, 2007 Businesses, today, have gone global and many have formed multinational alliances. This globalization, along with technological advances, and the sheer number of companies dealing internationally has brought about a dramatic change in the way people from different cultural backgrounds interact. These cross cultural differences are most noticeable in areas such as in behavior, etiquette, norms, values, written expressions, oral communication, and non-verbal communication. If workers can understand their own culture, they are then better able to adapt to other cultures when communicating within them. Guffey states that another way to achieve intercultural proficiency is to recognize barriers and ways to overcome them (110). To effectively communicate across international borders, we must be sensitive to other cultures and avoid misunderstandings and contrary views resulting from the various intercultural differences (Guffey101). When communicating to international audiences, workers must also pay special attention to not only oral and written messages, but also nonverbal communication. Nonverbal behavior includes actions and behavior such as eye contact, facial expression, posture, gestures, and the use of time, space, and territory (113). As business communicators, it is...
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...SUMMARY You may find certain aspects of Brazilian culture to be strange and quite different from what you are used to in Canada. One of the major differences is that Brazil is a collectivistic culture as measured on Hofstede’s Individualism Index, in contrast to Canada’s individualistic culture (Hofstede, 2014). Brazil’s collectivist nature will have many impacts on your daily interactions, including the Brazilian importance of family, which will often be place above work priorities (Training, 2012). Brazil is also different in its communication style, which tends to be more informal and indirect than Canada’s formal and direct style. Brazil is also considered a high-context culture, therefore it is important to pay attention to what is said, how it is said, and what is not said (Suderman, 2008). Another major aspect of Brazilian culture is the importance of building relationships before commencing business. Brazilians expect to get to know their business contacts through multiple meetings, in order to establish trust, and hopefully a friendship (DiPaolo, 2006). This process may take some time as it illustrates Brazil’s Polychronic orientation, which is more relaxed (slower) in nature and where the prevailing attitude is that “things will get done in their own time” (Suderman, 2008). Brazil is also very comfortable with inequality as evidenced by their high score on Hofstede’s Power Distance Index (Hofstede, 2014). As a manager in Brazil you will be expected to take absolute...
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...DATE: April 1, 2014 SUBJECT: Guidelines For Doing Business in The United Arab Emirates Here is the report you sanctioned on doing business in the United Arab Emirates (UAE). UAE is a well-established logistics hub providing access to markets in the Gulf, the Middle East, Africa, Eastern Europe, the Indian Subcontinent and the rest of Asia. The local emirate government closely parallels the federal government construct. A member of the ruling family constitutes the executive. Executing the directives of the executive are various ministries and other departments. The ministries and other departments, together with governmental agencies constitute the emirates governing bodies. This federal system of governance has provided for a stable political environment granting an attractive destination for international investment. Thank you for the opportunity to prepare this report. If I can provide additional help on our quest to bring our business to the UAE, please contact me. Attachment Executive Summary The UAE is one of the fastest growing markets in the Middle East. Peaceful and prosperous, the UAE offers businesses unlimited business opportunities in a diverse open economy. Located in the Arab Peninsula, the UAE is a well-established logistics hub providing access to markets in the Gulf, the Middle East, Africa, Eastern Europe, the Indian Subcontinent and the rest of Asia. Initial meetings are all about relationship-building – building trust and establishing compatibility...
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...Ritz Carlton Management Objectives & Goals Dwight Torres American Military University Abstract Ritz Carlton hotels are considered to be the leader in the luxury line of fine hotel accommodations. We will use online and offline references to explore and research how this came to be. We will consider the history, leadership, and management of the hotel brand in order to better understand their current position in the industry. In addition, we will focus on the employee recruitment process and the extensive training required to sustain the Gold Standard in this very competitive and sophisticated market. The Ritz Carlton’s Credo, Motto, and Three Basic Steps are the highlight of their success. Everyone at the Ritz is focused on ensuring his or her guests have a memorable experience. Keywords: Gold Standard, Credo, Motto, and Three Basic Steps In order to understand how the Ritz Carlton Hotel became known as a world-class hotel, first we must understand the history of the Ritz. Established by Cesar Ritz who was known in Europe as the "king of hoteliers and hotelier to kings", he redefined luxury accommodations with his management of The Ritz in Paris and the Carlton Hotel in London. Between 1905 and 1914, he and Auguste Escoffier opened several a la carte restaurants known as Ritz Carlton aboard well-known luxury ships. Unfortunately, as a result of World War I the Ritz Carlton chain or luxury restaurants ceased operating in 1914. Cesar Ritz died shortly after...
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...The Netherlands By [Your Name] [Instructor] [Class] November 23, 2014 TABLE OF CONTENTS EXECUTIVE INTRODUCTORY SUMMARY……………………………………………3 COUNTRY SPECIFICS……………………………………………………………….…3 ECONOMIC AND POLITICAL HISTORY……………………..……………………....4 SOCIOCULTURAL FORCES…………………………………………………………...5 NATURAL RESOURCES/ECONOMIC STABILITY…………………………………..6 POLITICAL AND TRADE RELATIONSHIPS………………………………………….6 PRIMARY BUSINESS, WORKFORCE, AND LABOR MARKET..…………………...7 FINANCIAL STABILITY AND VIABILSITY…….……………………………………7 VIEW OF THE FUTURE…………………………………………………………………8 WORKS CITED…………………………………………………………………………..9 The Netherlands, is a small country in Western Europe. It is slightly smaller than two New Jerseys. It is densely populated. The population is mostly Dutch. The official language is Dutch, with a few regionally recognized languages. The Netherlands is an extremely liberal and egalitarian country. Abortion, soft drugs, prostitution, and voluntary euthanasia are legal. The country ranked 18th in gross domestic product in 2012. The nation suffered in the recession and the European economic crisis, but not as nuch as other countries. The economy depends heavily on foreign trade. The country retains natural gas, petroleum, peat, limestone, salt, sand and gravel, and arable land as natural resources. They participate in European Union initiatives to preserve these resources. They teach tolerance and equality. The nation is stable financially, politically, and culturally. Country Specifics ...
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...to show respect for the country’s history and importance. While there is no problem with calling China a developing country, do not refer to it as a third-world country. After all, China’s importance as a powerful nation reaches back some 5,000 years. | The US, the world’s third largest country both in size and in population, is a multicultural mosaic of 300 million people of mixed race and heritage. Yet, despite this ethnic and cultural diversity, the US still exhibits a distinct business culture. An important aspect of US culture is the American Dream: the widespread belief that every individual can succeed and prosper financially by working hard. This idea contributes to a strong work ethic and to a system that is merit based. The repercussions of this belief in US work life are long work hours and frequent overtime, as well as a clear distinction between management and subordinates. In addition to a strong work ethic, American business culture is also characterized by a heavy emphasis on individual initiative and achievement. Personal competence, professionalism and accountability for individual performance are highly valued. |...
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...Contents Executive Summary................................................................................................p 3 Introduction………………………………………………………………………p 4 Case……………………………………………………………………… p5, p6, p7 Conclusion………………………………………………………………………..p7 Reference…………………………………………………………………………p8 Executive Summary The main purpose of this report is to solve the problems which Kelly was coming across. These problems are caused by the culture shock which is a common problem so this report tries finding the problems they met, and then give some advice, so it can help people who are working abroad to know how to solve these kinds of problems. Introduction Kelly is a programme manager for internet services company, her boss provided her an opportunity to work in Japan and had not provided training for her, she had no idea about Japan but in the beginning her family were glad to go there. When they arrived to Japan, she always displeased to her colleague and customers because she was lack of knowledge about Japanese culture, her husband could not find a job and her children complained their classmates who’s can not speak English. Kelly felt confused and disappointed, if it continues, she might lose her work. Case a. Explain the clashes in culture, customs and expectations...
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...Business Strategy Lois Griffin Leading in China Liberty University LDR 520 Dr. Barrett December 2, 2013 An Integration Strategy for Business in China Cross cultural differences is identified as the greatest challenge in doing business, ranking first in the world market when considering: “law, price competition, language, and delivery,” Boontanapibul (2010). An entrance strategy within China will be planned considering its cultural differences and how its difference in market might affect its potential employees. Also to be considered is how to prepare for these differences and if the best practice would be to hire locally or expatriate. As practices of management vary across countries the desire and ability to become and remain successful involve companies to always consider the differences and affects that come with each culture (Boontanapibul, 2010). Hiring Expats vs. China local talent When deciding how to enter the China market one must first decide its best practice for hiring. The options to be considered are hiring locally and expatriate. There could be issues in obtaining expat employees as the hardest issue for expatriate’s success in China is the time required to adjusting within its foreign country making hiring locally most feasible. Finances could be another reason why hiring locally would be in the greatest interest of the company. Selmer explains that the expense of the assignments for several expats could exceed the budgets as risk of failure...
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