Premium Essay

Aurora

In:

Submitted By q8aab
Words 1937
Pages 8
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 strategy – i.e. a strategy that improves profit margins, reduces operating costs, and appropriately manages inventory and account receivables will be crucial for Aurora to remain sustainable.

2. List the factors affecting the textile industry. What do you think is the state of the industry in the United States? How should you incorporate the state of the textile industry into your

Similar Documents

Free Essay

Aurora Borealis

...Aurora Borealis (Northern Lights) By: Adriana Zavala They are many myths about the Aurora Borealis (Northern Lights), named after the Roman goddess of dawn, Aurora, and the Greek name for the north wind, Boreas, by Pierre Gassendi in 1621.The Lapps or the Saami people that were a closely related race of the Finns’ who lived in Lappland, in what is officially Northern Finland, Sweden, and Norway traditionally believed that the Aurora Borealis “were the energies of the souls of the departed. When the fires blazed in the skies, people were to behave solemnly, and children were admonished to quiet down and be respectful of the fires. It was believed that whoever disrespected the fires incurred bad fortune, which could result in sickness and even death” The Lapps believed these fires to have magical effects; Lappish shaman drums often have runes illustrating the fires to connect their energy. The lights were believed to have a serene effect on arguments, and the time of the fires was beneficial to problem solving. The Lapps also had a belief that if you whistled under the Aurora Borealis, then the lights would take you away with them (1). An American history on the Aurora Borealis took as an event. After the battle of Fredricksburg, the Aurora Borealis could be seen. The army took is it as God’s sign to show that he was on their side throughout the battle. It is very unusual to see the Aurora Borealis in Virginia (2). The Aurora Borealis is seen in many ways. One as a diffuse...

Words: 730 - Pages: 3

Free Essay

Media

...Name Professor’s name Subject Date of submission EARTH’S AURORAS AND AURORAS ON OTHER PLANETS Introduction Theearth Auroras refer to thenaturallyoccurringflickeringlights in theskyespecially on thehighlatitudes. Thenaturallightdisplays in thesky with a variety of colors, which appearsvisible from greatdistances from theground. Thiskind of aspect is evident from thetales of peoplewholiveorhappen to be at highlatitudesandmanage to observe an etherealdisplay of coloredlightsshimmering across theskyespecially during thenight. According to Long, there are many a set of beliefs, which happen to explaintheconcept of Auroras in the Antarctic andthe Arctic regions of theworld. Differentpeopleperceivethenatural lightening of theskyassociated with variousmythologies from differentzones (Long 9). Forinstance, according to the Norse mythology, it is believedthatthenatural auroras werethebridge of fire to theskiesbuilt by thegods. Consequently, the Inuit believethat their ancestors’ spirits are everseendancing to the flickering light in thesky. All these are among the a fewbeliefsput forward by somepeoplewhoperceivetheearth auroras to be uniqueenough. Theeffect of theseearth Auroras in thenorthernhemisphereis termed as the aurora borealis orthe aurora borealis in otherwords. While in thesouthernhemisphere, thesameeffectis known as the aurora australis orthesouthernlights. Further, there are manycauses of theseearthly Auroras, andsome of them reflectbelow. Their technicalappearance...

Words: 919 - Pages: 4

Free Essay

Cinderella

...and living happily ever after! For example “Cinderella” and “Sleeping Beauty” they are both princess that have evil villains trying to ruin them, but their stories are not the same. For example, they have different struggles, and how they overcome them. They both sing magically, but have different songs. They may be two of the most known princess in the world, but they also have many differences. However, in the end either the glass slipper fits, or true loves kiss wins. Cinderella and Aurora are two of the most beloved Disney princess of all time. How they got to be the most loved princesses is two completely different stories literally! Cinderella is a good-hearted girl, who is a servant in her own home to her cruel step-mother and two step-sisters because her father died at a young age. As Aurora is a kind hearted princess born into royalty. Although she is living with misfortune, as Cinderella, because and evil fairy named Maleficent curses her to die on sixteenth birthday. So Aurora is a more tragic story. However, Cinderella is a more hopeful and optimistic story that one day things will turn around. She dreams of a day that she will no longer be a servant in her own home. Her chance comes true when there is a ball at the castle, where the prince is looking for his future wife. With the help of her mice friends they make a perfect pink dress. The worst comes and Cinderella’s step-sisters ruin her dress. When all is looking down for Cinderella her fairy god-mother comes...

Words: 1229 - Pages: 5

Free Essay

Miss

... is cursed to live forever. Tithonus tells Aurora, goddess of the dawn, that he grows old slowly in her arms like a “white-hair’d shadow” roaming in the east. Tithonus laments that while he is now a “gray shadow” he was once a beautiful man chosen as Aurora’s lover. He remembers that he long ago asked Aurora to grant him eternal life: “Give me immortality!” Aurora granted his wish generously, like a rich philanthropist who has so much money that he gives charity without thinking twice. However, the Hours, the goddesses who accompany Aurora, were angry that Tithonus was able to resist death, so they took their revenge by battering him until he grew old and withered. Now, though he cannot die, he remains forever old; and he must dwell in the presence of Aurora, who renews herself each morning and is thus forever young. Tithonus appeals to Aurora to take back the gift of immortality while the “silver star” of Venus rises in the morning. He now realizes the ruin in desiring to be different from all the rest of mankind and in living beyond the “goal of ordinance,” the normal human lifespan. Just before the sun rises, Tithonus catches sight of the “dark world” where he was born a mortal. He witnesses the coming of Aurora, the dawn: her cheek begins to turn red and her eyes grow so bright that they overpower the light of the stars. Aurora’s team of horses awakes and converts the twilight into fire. The poet now addresses Aurora, telling her that she always grows beautiful...

Words: 509 - Pages: 3

Premium Essay

Stereotypes In Disney Princess Movies

...from having to live a servant life and this is teaching young girls that if one so happens to be beautiful enough, a wealthy prince will come along and save them. These Disney princesses are emphasizing to young girls that thinness and sensual features are a woman’s most prominent characteristics and that is what is going to draw the attention of a husband. Falling in love with someone’s beauty and not personality is yet another way Walt Disney shows young girls that a female's appearance is what is going to get her a husband. This is exactly what happens in Sleeping Beauty, Prince Phillip and Aurora did not even speak to one another, before Phillips decides he wants to marry her and he is deeply in love with her. Young girls should not be expecting at the age of 16 to have mature breasts, and a crystal clear complexion, however this is what Walt Disney is visually showing them. Aurora is given the blessing of "the gift of beauty"(Disney, Sleeping Beauty) by the fairy Flora and this is simply another way that Walt Disney shows little girls that beauty trumps other characteristics. The princess is never given characteristics like strength and intelligence but rather the only thing that would get a prince to fall in love with her and that is the way she looks. Here, coming full circle with the princess not being able to show the prince what is truly on the inside because she is never given the chance. Sleeping Beauty pricks her finger on the spindle and falls into a deep sleep...

Words: 2254 - Pages: 10

Free Essay

How to Make Resume

...Create a homemade scroll to announce the celebration: Use a program like Microsoft word to type up the invitation. A good size for each scroll is about 5x9. Print out the invitation and wad up the paper into a ball to make crease marks on the paper. Next fill a bowl with paper and tea bags. Unroll the paper and dip it into the bowl. The tea bags will dye the paper into a nice aged look. The amount of time you leave it in the bowl will determine how dark it gets. You can lay it out to dry or use a hairdryer to dry the paper. If you roll a tea bag over the paper, it will leave tea grains on it, adding to the old look. Next, glue a small wooden dowel or stick to the top and bottom of the paper and roll up. Use thread or ribbon to tie it shut. Dowels can be painted or stained and have cute jewels glued to them. The Laughing game- Everyone starts out in a circle facing each other. The first one in the circle starts the game by saying HA. The next person adds one HA to it making it HA HA. Continue around the circle having each person add a HA to the last one. The first one to giggle is out. Continue on until you have the last person to laugh. They win a prize. Princess Trivia- Put together a trivia game using Disney Princess characters such as Sleeping Beauty, Cinderella, Snow White, Ariel, and Jasmine. The guest with the most correct answers will win a prize....

Words: 273 - Pages: 2

Premium Essay

Aurora

...Growth Strategies, Innovation, Alliances, and Execution Capella University Introduction Thompson & Strickland (2013) believes that a successful organization’s strategy depends on people, capabilities, structure, and execution. Important as well are growth and innovation (P.. 286), which allows an organization to remain competitive. Growth strategies arise from an organization’s SWOT where clear guidelines identify areas of focus. Achieving this requires innovation and alliances on products and services that will create a competitive advantage. Successfully execution requires a strategic manager who can effectively and successfully drive strategic objectives, then report its performance to the leadership team (Thompson & Strickland, 2013). This paper will examine how Pfizer utilized growth, innovation and execution strategies as well as acquisitions and mergers to become the number one global pharmaceutical company. The organization’s SWOT analysis (Thompson & Strickland, 2013) showed its strength in being innovative, opportunities to create more products, weakness in its dependence on successful products, and threats in generic competition and regulatory laws. The company’s corporate culture, strategic innovative through the top-down leadership approach, a unified tagline “OWN IT!” (Pfizer, 2013), and a strategy map demonstrates that all employees are ultimately responsible for their individual roles to drive success throughout the organization. Additionally, this...

Words: 4579 - Pages: 19

Premium Essay

Aurora

...Case #16 The Boeing 7E7 Synopsis and Objectives In 2003, the Boeing Company announced plans to build a new “super-efficient” commercial jet called the “7E7” or “Dreamliner.” This was a “bet the farm” gamble by Boeing, similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new airframe, as well as the fact that it would penetrate a rapidly growing market segment, were arguments for approval of the project. On the other hand, the current market for commercial airplanes was depressed because of terrorism risks, war, and SARS, a contagious illness that resulted in global travel warnings. Boeing’s board of directors would need to weigh those considerations before granting final approval to proceed with the project. The task is to evaluate the 7E7 project against a financial standard, the investors’ required returns. The case gives internal rates of return (IRR) for the 7E7 project under base-case and alternative forecasts. We must estimate a weighted-average cost of capital (WACC) for Boeing’s commercial-aircraft business segment in order to evaluate the IRRs. As a result of that analysis, we will identify the key value drivers and distinguish, on a qualitative basis, the key gambles that Boeing is making. The need to estimate a segment WACC draws out our abilities to critique different estimates of beta and to manipulate the levered-beta formulas. Boeing competes in both the commercial aircraft...

Words: 448 - Pages: 2

Premium Essay

Aurora

...Recommendation: Team E did a great job explaining the situation. It was well summarized and presented. However, we felt that they could have described a more in depth and detailed marketing campaign. We agree that it would be a good move instead of trying to compete with Viagra it would be better to use the beat strategy by positioning Cialis differently. Team E explained the Cialis positioning well, but unfortunately they didn’t explain Viagra’s position. Viagra at the time was more about the masculinity and they were using older celebrities to promote the drug, while Cialis as team E mentioned was supposed to be about relationship. This approach was also more in line with Eli Lilly’s overall company mission. They wanted to be perceived as first or best in class, stand for quality of life and believed in marketing directly to the consumer. To achieve this goal, they established a global marketing sales as well as geographically distinct affiliates. Pfizer on the other hand had the largest sale force in the industry and spent in 2001 alone $108 Mio on direct-to-consumer marketing for Viagra. We feel that this information would have been also important to support the positioning and marketing strategy for Cialis. This information together with all the market research team E presented would explain why a pull strategy would be the favorable strategy. All this information will lead to a more pull strategy, which would also be positively supported by the research. ...

Words: 271 - Pages: 2

Free Essay

Aurora Expeditions

...expeditions Scotland, Arctic & Russia Scotland and Faroe Islands | European Arctic | Russian Arctic | Russian Far East 2012 it Stra it tra Denmark S Denmark ATLANT C A T L A N T II C OCEAN OCEAN St Kilda St Kilda Reykjavik Reykjavik GREENLAND GREENLAND Isafjordur Isafjordur ICELAND ICELAND Oban Oban Faroe Faroe Islands Islands ouu SSo b byy ss ree or So Scc nd nd 90° 90° 60° 60° 30° 30° Edinburgh Edinburgh UK UK Norweg an N o r w e g iia n Shetland Islands Shetland Islands G een and G rre e n lla n d Sea Sea Spitsbergen Spitsbergen Longyearbyen Longyearbyen 0° 0° North North Sea Sea NORWAY NORWAY Sea Sea North North Pole Pole 30° 30° 60° 60° 90° 90° Franz Josef Franz Josef Land Land Novaya Novaya Zemlya Zemlya 2012 EXPEDITION PROGRAM CRUISE DATES VOYAGE * Kayaking Option # Diving Option WILD SCOTLAND & EUROPEAN ARCTIC 11-24 June 14 days WILD SCOTLAND AND THE FAROE ISLANDS*# SPITSBERGEN ODYSSEY* SPITSBERGEN ODYSSEY*# JEWELS OF THE ARCTIC *# JEWELS OF THE ARCTIC * RUSSIAN COAST TIC IC ARC T ARC E CL E L CIR C CIR B aren ts B aren ts Murmansk Murmansk Sea Sea a lya mly em Ze aaZ yy vaa oov N N Kara Kara Sea Sea PAGE 8 R R 19-29 July 11 days 29 July-8 Aug 11 days 8-21 Aug 14 days 21 Aug-3 Sept 14 days 10 10 12 12 25 June-7 July 13 days 7-19 July 13 days 19-31 July 13 days 31 July-13 Aug 14 days 13 Aug-7 Sept 26 days 8-21 Sept 14 days RING OF FIRE* BERING SEA EXPLORER*...

Words: 19097 - Pages: 77

Free Essay

Aurora Case

...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...

Words: 1442 - Pages: 6

Free Essay

Aurora Borealis

...colors. The northern horizon is draped with an iridescent green, deep blues, sharp violets, scarlet reds, and bright oranges and yellows. You stand awestruck as the colors descend, like a melting rainbow, across the sky. Then, as quickly as they appeared, they vanish without a trace. This natural phenomenon is known as aurora borealis, or the northern lights, or better known as the dancing lights. Aurora Borealis is one of the most exotic and difficult concepts in astronomy. The colours of aurora borealis are fomed by the collision of gas particles in the Earth’s atmosphere with charged electrons from the sun’s atmosphere. So, today I will inform you about the different types of gas particles that are involved in the production of the colours of aurora borealis. I obtained the all the information about Aurora Borealis from the book entitled The Amazing Northern Lights authored by Syun-Ichi Akasofu. First of all, the big player in the formation of lights of the aurora borealis is oxygen. Oxygen is responsible for the vivid green light and also for a deep brownish red light. The emission of the deep brownish red light occurs at high altitudes of the aurora. At high altitudes, the earth’s atmosphere contains a greater percentage of atomic oxygen and is very thin like a hard vacuum giving the atoms ample opportunity to emit red light since the collisions between atoms happen only about every 7 seconds. This atomic oxygen emits red light at a wavelength of 630.0 nm. At this...

Words: 571 - Pages: 3

Premium Essay

Aurora Textile

...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...

Words: 596 - Pages: 3

Premium Essay

Hyperion Aurora

...Hyperion Aurora Trust Case 1. Factors in the 1990s a. Chartered banks began to align themselves with full service brokerage houses and CIBC bid and won Hyperion Trusts (proprietary mutual funds sold by Wood Gundy brokers) b. Mutual fun business growth required new professional management c. Brokers wanting more flexibility in the configuration of 5.5% commission from Hyperion and .5% service fee every year thereafter (depends on age ex. Younger wants the upfront commission) → wanted a more flexible pricing structure 2. ? 3. No-Load: you can buy and redeem the mutual fund units/shares at any time without a commission or sales charge. However, some companies such as banks and broker-dealers may charge their own fees for the sale and redemption of third-party mutual funds. Front End Load: fee is charged up front (charge for shares purchased + sales fee) Back End Load: fee is charged when you redeem the mutual fund a. Investor to firm i. No load: MER → management expense ratio - measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors. ii. FEL: MER iii. BEL: MER + redemption charge (usually % of initial investment – around 4-8%) b. Investor to broker i. No load: nothing ii. FEL: sales commission...

Words: 389 - Pages: 2

Premium Essay

Aurora Textile

...Aurora Textile is a problem where they only have two option, which is to buy the Zinser 351 or to use the older generation machine from past decade. The problem is much more severe when faced with the fact that Aurora have been on loss for four years now, coupled with more and more textile industry moving their operation to overseas. 1. If Aurora Decided to stick with their old machinery If Aurora decided to stick to their old machinery, First off they current book value of the machine is $ 800,000 (from data given). Taken into account the sales growth (2%) and volume (1%) next year, combined with the current selling price of $ 1.0235 per pound means annually the old machine will produce $ 511,750 (not taking account returned goods), while for the next four years consequently it will produce $ 516, 867.5, $ 522,036.175, and $ 527, 256.537. The current book value of machine of $800,000, coupled with $200,000 for the remaining of four years of usage (then it will be free of depreciation), means taking NPV of Hunter Plant is estimated to be $ 8.9 million. 2. If Aurora Decided to Invest in Zinser 351 Machine If Aurora decided to invest in new machine, at first they will need an initial investment of $8.25 million (from total capitalized cost), plus, Aurora have spent $ 5,000 on engineering test, $ 15,000 market research, and additional $50,000 for one time employee training. The effect on investing on Zinser, is that they will be reduction in conversion cost of Hunter plant...

Words: 405 - Pages: 2