...AURORA TEXTILE COMPANY KEUANGAN PERUSAHAAN LANJUTAN Tugas Disusun oleh Audrya Puspita (1306415024) Joddy Eka Negara (1306395350) Richie Wibisono (1306408675) FAKULTAS EKONOMI DAN BISNIS UNIVESITAS INDONESIA Depok 2016 AURORA TEXTILE COMPANY Aurora Textile Company merupakan sebuah perusahaan tekstil yang memproduksi benang yang telah berdiri lama sejak awal 1900-an di Ameika Serikat. Pada Tahun 2003, Michael Pogonowski sebagai CFO Aurora Textile Company mempertimbangkan tentang pengadaan mesin baru ring-spinning Zinser 351 untuk menggantikan mesin lama yang telah ada sejak tahun 1997 di Hunter. Penggantian mesin baru tersebut diperkirakan dapat memberikan banyak kemajuan bagi perusahaan karena selain mesin tersebut dapat membuat produktivitas meningkat, keberadaan mesin tersebut juga dapat memberikan hasil produksi benang yang lebih berkualitas. Dengan meningkatnya kualitas produksi, maka akan menyebabkan harga benang yang dijual akan naik sebesar 10%, yaitu $1.0235 per pon. Selain itu, mesin tersebut juga mampu membuat biaya operasi dalam produksi menjadi lebih efisien karena adanya penurunan biaya operasi seperti penurunan konsumsi tenaga pembangkit dan biaya perawatan karena perusahaan menggunakan mesin rotor-spinning dan ring-spinning. Pengambilan keputusan untuk melakukan investasi pada mesin Zinster 351 berdampak pada jumlah penjualan yang akan turun sebesar 5% dari pasar tahun berjalan. Selain itu, hal tersebut juga akan berdampak pada kemungkinan terjadinya retur...
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...CASE 21: AURORA TEXTILE COMPANY Q1. How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that clear present a clear picture of Aurora’s financial condition? A- From 1999 – 2002, Aurora Textiles Company’s financial performance was unappealing and disheartening. Like many of its competitors, Aurora had been struggling financially. The company had not responded quickly to the deteriorating business environment, and had suffered consecutive losses for the past four years. Figure 1: Net Earnings of Aurora Textile Company (1999-2002) The graph above shows the net earnings of the company from 1999-2002. As we see, throughout the years, the net earnings have declined and resulted in a loss, especially in 2001. This could be attributed to the business risks that arose from the intense competition that characterized the industry in which Aurora operates. Moreover in January 2005, the US textile industry experienced intense competition when the WTO lifted the ban on quotas, which worsened Aurora’s financial condition and its credit rating of BB. The main reason for the decline in net earnings was due to the textile industry facing difficult circumstances. Figure 2: Financial ratios (1999-2002) The above table shows the financial ratios of the company from 1999-2000. Measures of probability have worsened during these years as ROA and ROE have been declining. Net sales have been steadily declining which led to management’s...
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...MANAGERIAL DATA ANALYSIS – CASE STUDY SUBJECT ANALYSED: THE RELATIONSHIP BETWEEN GROSS DOMESTIC PRODUCT AND HUMAN DEVELOPMENT INDEX in 41 COUNTRIES MIHAILA MIOARA 25% PETRE ALEXANDRA 25% SIMION LAURENTIU 25% TARIUC MONICA 25% MANAGEMENT of INTERNATIONAL PROJECTS ASE 2009 Case Study Record 40 – 60 data for two statistical variables (X and Y) at your choice. I. For each of the two variables: a) Calculate and interpret the average, standard deviation and the coefficient of variation for row data. Interpret the results. Is the data series homogenous? b) Summarize the data in an appropriate number of classes. Construct the frequency distribution. c) Calculate and interpret for the frequency distribution the average, standard deviation and coefficient of variance. Compare with the results from point a). Explain the differences. d) Construct a histogram and describe the shape of the distribution based on the histogram. e) In which interval is expected that about 95% of the data will fall? Is this assumption true for this data? II. Using the “Pivot Table Wizard” in EXCEL, build a pivot table on your spreadsheet (using also the second variable). You may have to change the order of the rows (You should define the intervals first using VLookup function. ...
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...Aurora Textile Company Case Abstract In January 2003, Michael Pogonowski, the chief financial officer of Aurora Textile Company, was questioning whether the company should install a new ring-spinning machine, the Zinser 351, in the Hunter production facility. This new machine has ability to produce a finer-quality yarn that would be used for higher-quality and higher-margin products. In deciding whether or not to invest this new machine, NPV and the payback period are critical factors. Firstly, we need to forecast the cash flows that the Zinser 351 will generate in the future. After calculation, the ten-year NPV will be $3, 172,582. Secondly, we use the payback period to analyze the acceptance of this project. Based on this analysis, Aurora Textile Company should invest this new machine because of the positive NPV and relatively small payback period, which we will analyze in the following discussion. Analysis In this analysis, we determined that NPV is the critical factor determining whether the company should invest or reject that new project. Secondly, we established that the payback period is another contributing force in our decision. The payback period tells us whether we can earn some money in the set period of time but this model has a few drawbacks, such as ignoring timing of cash flows and the positive cash flow after the payback period. In both calculations, NPV and payback period, we forecasted future cash flows. Cash flow from investing in the Zinser: ...
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...Case Questions 1. How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that present a clear picture of Aurora’s financial condition. From 1999 through 2002, the financial performance of Aurora was unattractive and disheartening. This could be attributed to the business risks that arose from the intense competition that characterizes the industry in which Aurora operates. Absent an industry benchmark or comparable with which to gauge the performance of Aurora, we utilized a trend analysis of the period 1999 through 2002. With 1999 as a reference point, we noticed that all measures of profitability have worsened. On a cumulative annual basis, net sales have been declining by 15%, while profit margins and ROA were always in the negative (see exhibit 1). While raw material cost as a percentage of net sales have been declining, the cost of conversion is escalating and affecting the bottom-line (see exhibit 1). It is obvious that Aurora needs to manage its expenses to generate profits from sales. While on the surface, the liquidity measures have improved (see exhibit 1), it is doubtful that the company has the ability to meet its current obligations with just cash and cash equivalents on hand. This is partially due to the fact that many of the firm’s current assets are predominantly account receivables and inventories. While it is true that the firm, its competitors, and the industry are continuing to lose money, an effective cost-control...
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...EXECUTIVE SUMMARY Aurora Textiles has historically been one of the premier textile companies in the United States and now has a decision to make. With the opportunity to invest in equipment that could help cure our slumping financials, we must carefully explore whether this investment is appropriate for a company with such an uncertain future. With that in mind we believe that the Zinser 351 is the perfect investment to pull us out of this slump. As a company that has been able to deliver a premium product for the consumers, the Zinser 351 will allow us to continue to do that while also begin relieving some of the financial stress that we have been under. Our analysis shows that the Zinser 351 project will yield a Net Present Value of $6,474,082.14 million and a discounted payback period of 5.6 years. This project not only brings a big enough payoff as demonstrated by the NPV, but also fits our timeline. The discounted payback period indicates that our investment will be realized before our company is not able to recover from our current financial struggles. The Zinser 351 is a project that this company must undertake if it wants to begin to bring value back to the shareholders who have become more and more impatient with us in recent times. This is an opportunity for Aurora to turn around its fortunes and once again prove that it is the premier textile company in the United States. ANALYSIS When deciding whether the Zinser is a worthwhile investment or...
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...Zinser Cost = $8.05 mil + $200,000 (installation costs) = $8.25 mil Life expectancy = 10 years with straight line depreciation No value after ten years, but option of sale on open market for $100,000. Sunk costs = $15,000 (marketing research) + $5,000 (engineering tests) Note: Price of Zinser goes up 5% a year. Ring-spinning process is more expensive and slower (3 to 5 times), but makes better quality yarn. Training cost = $50,000 during installation year Reduces power and maintenance costs savings of $0.03/lb. SG&A expenses = 7% for both machines Cost of costumer returns = $0.084/lb. Industry forecast: 2% increase in growth, increase in prices and costs at 1% inflation rate. Buffer stocks are necessary to hedge against the uncertainties surrounding cotton’s timely delivery and problems with spinning machine. Replacement hurdle rate = 10% Sales Volume-500,000 500,000* 5% decrease = 475,000 (new sales volume) How to compute: • Pounds Shipped o the new sales volume of 475,000 x 52 weeks= volume for a year o 2% increase in growth every year which is how I forecasted my projections o (475000*52)*1.02 o 24,700,000*1.02=25,194,000 • Avg. Selling Price Per lb. o Starting price 1.0235 10% increase o 1.0235* 1.10= 1.1259 o Increase by 1% inflation 1.1259* 1.01= • Conversion Cost Per lb. o 0.43* 1% increase in inflation • Avg Raw Material per lb o Given in the consolidated income statement o 0.4509* 1% increase o 0.4509*1.01=0.4554 • Net Sales...
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...Q.1 The Textile-Mill Industry is a term associated with industries that are primarily concerned with the design and manufacturing of clothing as well as the distribution and use of textiles. The industry can be split up into three stages: Cotton stage, industrial revolution, and post industrial revolution. In the early parts of the Textile-Mill Industry, known as the cotton stage, products were produced at home using wool, cotton, or flax depending on the area and location. The excess material was sold to merchants called clothiers who would visit the villages and buy large amounts of excess cloth from local producers. The process for making cloth involved three steps which included preparation of fibers for spinning, spinning, and weaving or knitting. In the early days everything was very labor intensive and the market was limited to local towns and passing clothiers. The second stage of the Textile-Mill Industry is known as the industrial revolution stage. During this period mass production of clothing became a mainstream industry which resulted in a growth of the entire Textile-Mill Industry. The spinning and weaving process became mechanized with several new machines introduced to the industry with the majority of the power coming from water wheels. Additionally, the industries market began to expand as exports of textiles began to rise. Presently the Textile-Mill Industry is situated at the third stage known as the post industrial revolution stage. In...
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...children’s clothes, as well as clothing accessories. Consumer spending on clothing increased by 12.5% between 2006 and 2010, which was slightly below the rate at which overall consumer expenditure increased (12.9%). In 2010, it was estimated that the clothing retailing market was worth £41.9bn, which was the highest value seen over the review period. Key Note believes that supermarkets have increased their share of the clothing market, now accounting for around 25% of the total market. Supermarket retailers have witnessed a large increase in sales since the recession, as consumers became more cautious about unnecessary spending, and turn to cheaper alternatives available in the supermarkets. There has also been a decline in specialist companies operating within the clothing retailing industry, with figures from National Statistics indicating that, in 2010, there were 11,800 shops, compared to 12,700 in 2009; this represents a 7.1% decrease over the course of that year. This phenomenon is visible in many UK cities, where an increase in empty high-street shops is apparent. Many independent shops were forced to exit the market after the recession, as they could not compete with the larger well-known retailers and supermarkets. The cost of clothing is expected to rise, shaping the industry over the forthcoming years. On the 4th January 2011, VAT increased to 20%, while the rising cost of cotton will continue to increase the retail price of garments. Other issues, such as the weak...
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...MQM 385 Summer 2008 Under Armour Strategic Analysis Team 2: Paul Huston. Ryan Marchand. Eric Webster. Rachel Eberle. Irén Ganèva. Lamar Wooley. Margaret Kobel. Table of Contents Executive Summary ___________________________________________________________2 External Analysis _____________________________________________________________3 Value Chain…………..…………………………………………………………………….3 Key Success Factors ……………………………………………………………………...7 Porter’s 5 Forces ……………...……………………………………………...…………..9 External Analysis Conclusion …………………………………………………………...12 Opportunities in the environment …………………………………………….....12 Threats from the environment …………………………………………………...14 Internal Analysis_____________________________________________________________16 Financials & Cash Flow Analysis ………………………………………………………16 Cash Position ……………………………………………………………………16 Financial Indicators ……………………………………………………………..16 Cash Flow ……………………………………………………………………….16 Internal Analysis Conclusions …………………………………………………….…….17 Strengths ………………………………………………………………………...17 Weaknesses ……………………………………………………………………..17 Competitive Strategies ________________________________________________________19 Current Corporate Strategy ….………………………………………………………..19 Integration position ……………………………………………………………...20 Diversification position …………………………………………………………21 Current Business Strategy ….…………………………………………………………23 Product positioning ………………………………………...………...…………23 Current Functional Strategy …….…...
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...Gina Garza Sustainable Fashion Sustainable fashion also known as ‘Green,’ has been successfully promoted in the past years to become the new black. This is a new trend that will hopefully prevail not only for a season but also for years. If people keep supporting it, it could possibly prevail forever. As technology has developed the planet Earth has been deteriorating slowly. This new concept supports and promotes the idea for people to be environmentally conscious. The idea is to care for the place where we humans live. Green is now everywhere. When you go to the market to buy groceries you can find that there is sustainable packaging that will integrate to the planet after its use. Now people take their own cloth bags to carry the products that they purchase so they don’t use plastic bags. This has become a fashion as well. To be more environmental friendly, why not use sustainable clothes? Clothes are one of the major necessities that a human may have. People can look fashionable, in style, and support the planet at the same time. The nonprofit Sustainable Technology Education Project (STEP) defines eco-fashions as clothes “that take into account the environment, the health of consumers and the working conditions of people in the fashion industry” (West). Sustainable fashion is designed to be completely environmental friendly. This whole movement complements a larger trend of "ethical fashion," and according to the May 2007 Vogue appears not to be a short-term trend but...
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...WEBSITES 15 PRINT MAGAZINES WITH ONLINE PRESENCES 15 PAKISTANI MAGAZINES 17 ENGLISH 18 URDU LANGUAGE 18 URDU MAGAZINES FOR CHILDREN 19 ENTREPRENEURSHIP DEVELOPMENT INSTITUTE 20 INTRODUCTION 21 VISION 21 MISSION 21 PORTFOLIO 22 STARTUP MAGAZINE 22 INTRODUCTION 23 MAGAZINE PROFILE 23 FEATURES 23 CREATIVE BRIEF 24 MEDIA PLAN 27 SITUATIONAL ANALYSIS 28 MARKETING ANALYSIS 28 PRINT MEDIA 28 DIRECT MEDIA 28 SOCIAL MEDIA 29 RADIO AD 29 MEDIA OBJECTIVES 29 MEDIA STRATEGY DEVELOPMENT AND IMPLEMENTATION 29 EVALUATION AND FOLLOW UP 30 PRINT ADS AND ITS DIFFERENT VERSION 31 RADIO ADVERTISEMENT 41 SCRIPT 41 PRINT IS NOT DEAD 42 ACKNOWLEDGEMENT EXECUTIVE SUMMARY EDI is an entrepreneurial company, launched in 2011, with an innovative vision in today’s chaotic arena. We are passionately committed to doing whatever it takes to help our clients be successful. By applying our insights and experience, we create inventive solutions that offer a smarter way forward. Our wide spectrum of potential services includes Entrepreneurial Research & Publications,...
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...A Research Paper On Why Capitalism Succeeded In Generating An Industrial Revolution In Other Countries But Failed In The Philippines Submitted by Manuel Ortega Abis Student No. 11-71-003, BPA Special Program Batch 8-A CAPA, Universidad de Manila Professor Ronaldo J. Navata PREFACE The research materials and references used in this research paper were managed to be gathered through unlimited internet hours and limited library hours, but the pages on the web and the pages of the book offered equal enlightenment and enjoyment. The premises and conclusions built and reached in this paper are products of the researcher’s serious analysis of the Philippine economic situation. The researcher, however, is praying that his objectivity and the sincerity of his language shall not fail him in his own humble attempt to bring this mini-thesis to its just and proper course and closure. The twin causes formulated in this paper are generally subdivided into two: the concept of economic will (policy system of governance) and the concept of economic ownership (property system of the governed). Further reading is advised on critical and related topics of this paper. For the economy, these words: there is no such thing as the co-existence of freedom and equality. God bless the Philippines! ______________________________________________________________________________ ...
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...[pic] “To Study the Current Market Scenario and the Future Prospect of Leather Chemical Industry of Bangladesh” Internship Report Submitted To: MR. AZMAL HOSSAIN Executive Director ACI Trading Limited. Submitted By: Mohammad Tawhid Reaz Internee, ACI Trading Limited. [pic] A D V A N C E D C H E M I C A L I N D U S T R I S L I M I T E D 245, Tejgaon Industries Area, Dhaka- 1208. Date: 25 June, 2006. June 24, 2006 Mr. Golam Mohammed Chowdhury Chairman Internship & Placement Office Institute of Business Administration University of Dhaka Dhaka-1000 Dear Sir: Subject: Internship Report on “To study the current market scenario and the future prospect of the leather chemical industry of Bangladesh”. It is my pleasure to present this Report on “To study the current market scenario and the future prospect of the leather chemical industry of Bangladesh” as a requirement for completing my Masters in Business Administration with concentration in Marketing. The report presents my findings and analyses on the Leather chemical industry of Bangladesh and the project I worked on for the last 10 weeks in ACI Trading Limited. I am grateful to you and my supervisors; Mr. Mustaque Ahmed, Assistant Professor, IBA and Dr. Azmal Hussain, Executive Director, ACI Trading Limited, for giving me the opportunity to carry out this report. With kind regards Sincerely yours, Mohammad Tawhid Reaz Roll 037 ...
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...LIST OF BGMEA ASSOCIATE MEMBER 4 Star Trade International (Reg: 323) Rizur Rahman Managing Director 385/1 (6th Floor), East Rampura Rampura, Dhaka-0 Tel: 9340830, 8855811, 0171532301 Email: suman@4starfashions.com 7 Mark (Reg: 799) Dr. Ezazur Rahman Proprietor 7-9, Kawran Bazar, BTMC Bahaban (7th Floor) Kawran Bazar, Dhaka-0 Tel: 8112523, 01711590399 Email: info@7mark.net A & B Apparels (Reg: 58) Anwar Kabir Proprietor House # 26, Road # 3, Block-C, Flat # 4A, Bonasree project Rampura, Dhaka-0 Tel: 7286871 Email: anbapparels@bdonline.com A & S Dot Com (Reg: 1005) Sumon Hamid Proprietor House # B-11 (3rd Floor), Lane-07, New DOHS Mohakhali, Dhaka-1206 Tel: 01819241069, 8411260.61 Email: sumon@aandsdotcom.com A K Tex Trading (Reg: 674) Amal Chandra Datta Proprietor Section 10, Block C, Road # 18, House 01 Mirpur, Dhaka-0 Tel: 01713009108, 01190238186 Email: aktex@pradeshta.net A & C (BD) Ltd. (Reg: 109) Bong IL Kim Managing Director House # 26 (3rd Floor), Block-G, Road # 7 Banani, Dhaka-0 Tel: 8828066, 9892549-50 Email: ancbd@citech-bd.com A & S Sourcing (Reg: 1046) Amirul Absar Proprietor RDR House (5th Floor), Plot 1, Road # 1, Nikunja-2 Khilkhet, Dhaka-1229 Tel: 01711439081, 7912885 Email: contact@assourcingbd.com A & R Apparels International (Reg: 1037) Tultul Chowdhury Managing Partner 6/2, Jawab Street (1st Floor) Wari, Dhaka-1203 Tel: 01833311286, 01671333681 Email: ar.apparelsintl@gmail.com A & Y Services (Reg: 783) Syed Abu Ali Proprietor Niketon Heights, Road...
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