...Bausch & Lomb, Inc. (A) In the case of Bausch & Lomb, Inc., the company’s leadership style and business strategy led key financial preparers to show revenue on company financial statements when it should not have been recognized. The two main criteria for revenue recognition are: 1) the seller must have substantially performed its obligations to the customer; and 2) the seller must have obtained an asset from the customer that it can reliably measure. If the asset is not cash, the seller must be reasonably certain of converting it into cash. Only when these two criteria are met can the entity then recognize revenue in their financial system. The sector of Bausch & Lomb, Inc. that was affected by incorrect revenue recognition was conventional lens sales. Conventional lenses fall under the Medical Sector and more generally under the Healthcare segment of the company (Exhibit 1). Since contact lenses do not require additional obligations, such as services or warranties, from the company after they are purchased, once the lenses have been bought, revenue can be recorded. It is presumed that Bausch & Lomb, Inc. operates under an accrual basis of accounting which separates the recognition of revenue with the receipt of cash. Even when the company went to great lengths to extend credit and sell the remainder of their conventional lens inventory to third-party distributors, the transaction is not complete until the delivery is made by Bausch & Lomb. Otherwise, the payment to...
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...Bausch & Lomb What is the impact of the new distribution and sales program on the Bausch & Lomb 1993 financial statements? Address why or why not you would consider the impact “material.” a.) Address not only the impact on sales revenue but also look at the impact on operating earnings (Both Income Statement Issues) and relevant asset balance sheet accounts. The impact on Sales Revenue as well as Operating Earnings is in our mind materially important when looking at the income statement. By selling inventory earlier then it would have in its normal business cycle Bausch & Lomb moved future sales into the current reporting period. In the short term Bausch & Lomb is exhibiting growth in sales revenue that is not really there. Operating Earnings derived from the Income statement is going to be greatly convoluted, and misunderstood by their decision to sell inventory earlier then it was needed. The cost of goods sold will be much higher then it normally would have under normal selling conditions, which could lead to many misunderstandings. Operational managers in the company who use sales and COGS as important indicators in producing goods for Bausch & Lomb may make poor forecasting calls when determining what and how much to make of particular products. Also potential future investors and current shareholders are given a misrepresentation of the true demand for Bausch & Lomb’s product and inventory control. From a balance sheet perspective the Accounts Receivables and Inventory...
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...and history of RAYBAN INTRODUCTION Ray-Ban is a brand of sunglasses and eyeglasses founded in 1937 by American company Bausch & Lomb. The brand is best known for their Wayfarer and Aviator styles of sunglasses. The founder of the RAYBAN is Lester Belisario. It’s headquarter is in Milan, Italy and formally Rochester, New York, USA. The owner of the RAYBAN is Luxottica group. In 1999, Bausch & Lomb sold the brand to the Italian Luxottica Group for a reported $640 million. HISTORY The history of the Ray-Ban Aviator dates back to the 1930s, when new airplanes allowed people to fly higher and farther. Many US Army Air Service pilots were reporting that the glare from the sun was giving them headaches and altitude sickness. In 1929, US Army Air Corps Lieutenant General, John MacCready asked Bausch & Lomb, a Rochester, New York-based medical equipment manufacturer, to create the sunglasses that would reduce the headaches and nausea experienced by pilots, which are caused by the intense blue and white hues of the sky and then a new kind of glasses were introduced. The model was created in 1936 and it was known as ‘Anti-Glare’ which had plastic frames and green lenses that could cut out the glare without obscuring vision. The sunglasses were again remodeled with a metal frame and rebranded as the ‘Ray-Ban Aviator’. On May 7, 1937, Bausch & Lomb took out the patent, and the Aviator was born. In 1939, Ray-Ban then launched a new version of the aviator called the Outdoorsman...
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...During a routine market survey of college students—the target group for Bausch and Lomb (B&L) contact lenses—a team from FCB Ulka, the company’s creative agency made a significant discovery. It found that when youngsters play dumb charades, the person who is called to gesture, involuntarily puts aside his glasses (if he’s wearing one), so his mates can correctly read his expressions. Surprisingly, for a country of 17.37 million in need of vision correction, the contact lens penetration is dismally low—at 5%, that is about 0.87 million users, representing a market of Rs 100-120 crore, although growing at 20% year-on-year. This compares poorly with contact lens penetration in, say, China (16%), Thailand (13%) and Malaysia (25%). The total vision care market in India is valued at Rs 1,800-Rs 2,000 crore (95% unorganised and growing at 25% per annum), of which the contact lens market accounts for only Rs 100-120 crore. The key players are B&L, Johnson & Johnson brand (although they only operate in the premium category, that is, daily, fortnightly and monthly modality disposable lenses, priced in the range of Rs 1,400-Rs 30,000 per annum for the daily disposable lenses) and Ciba Vision (specialist in coloured lenses). The three players command 60%, 30% and 10% share respectively in the urban market, according to market estimates. The unorganised market is small (Rs 30 crore) and not a cause for worry. The Y-o-Y growth for the organised sector is 20%, although in the last couple...
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...up of the Indian markets to foreign companies, one of the several products which gained prominence was sunglasses. The credit for enlivening the Indian market must go to the global player, Bausch & Lomb (B&L), the producer of the global brand, Ray Ban. There did exist an Indian market, fairly large. But this was limited basically to low-end or medium range products. Small quantities of high-end glasses were imported. In the recent years several others like Safilo of Italy, Ciba Vision, Johnson & Johnson have entered the market. The total market, estimated at around 4.0 mn pairs in 1990-91 had expanded to a little over 12 mn pairs in 2003-04. The organised segment, constituted of the branded ones, claims a 25% share. The small players are still very active in the lower end of the market. Bausch & Lomb, the Rochester-based American visioncare enterprise for contact lenses and other lens and eye-care products and eye-care solutions established a manufacturing base at Bhiwadi in Rajasthan and commenced production in 1993. This marked the foray of MNCs into the production of sunglasses, contact lenses, spectacle frames and lenscare solutions. B&L was originally formed as a joint venture company with equal equity participation from Montari Industries, an Indian group and Bausch & Lomb of the US. Montari Industries pulled out of this venture. The company landed into rough weather and within first four years it accumulated losses of Rs 210 mn. B&L put in place a strategic...
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...Bausch & Lomb enjoyed a great run between 1981 and 1991. Achieving double-digit annual growth was CEO Dan Gill's over riding goal. Things started to unravel in the early 1990s as growth slowed in the United States and Europe, competition intensified, and Gill's strategy of diversification failed. But the unyielding growth targets remained. And the key to financial rewards was straightforward: making the numbers. How did the operating managers cope? With practices that resulted in a Securities and Exchange Commission investigation and a shareholder class-action suit, among other things. Only after the SEC investigation began did Gill and his top executives order the company to follow more conservative practices, eliminate quarter-end wheeling and dealing, reduce distributor inventories, and change bonus guidelines to incorporate broader, longer-term goals. Bausch & Lomb and S.E.C. Settle Dispute on '93 Profits Bausch & Lomb Inc., the optical company, and four former managers of the company settled allegations by the Securities and Exchange Commission yesterday that they had violated securities laws by overstating profits in 1993. The company, which is based in Rochester, said it had also reached a preliminary agreement to pay $42 million to settle a lawsuit brought by shareholders over the matter. While neither admitting nor denying the allegations, Bausch & Lomb accepted an order by the S.E.C. to cease and desist from future violations of the securities laws...
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...industry and its competitive environment, ensuring accurate and focused strategies for your business. market research can be used throughout your entire organisation, including strategic development, marketing, mergers and acquisitions, and brand management. TRENDS * The year 2009 saw increased marketing efforts by the sector leader Bausch & Lomb, and also from Johnson & Johnson, as they looked to increase the use of contact lenses in India and dispel some of the concerns and apprehensions among potential users. Targeting the youth and young adult markets, these companies are focusing on the fashion and feelgood factors associated with using contact lenses rather than their functional benefits. COMPETITIVE LANDSCAPE * Bausch & Lomb Eyecare India, the subsidiary of the US-based multinational, leads the Indian contact lenses market, although its market share declined over the review period. Bausch & Lomb still accounts for more than half the retail sales of contact lenses in India, because of its strengths in the extended wear subsector and in distribution. By February 2009, the company claimed that Bausch & Lomb lenses were available in more than 5,500 outlets, and it aimed to expand this network to 7,000 outlets during 2009–2010. PROSPECTS * With spectacles remaining popular, sales of contact lenses are expected to continue to grow at a steady pace, with no huge spike in demand, with a CAGR of a 13.7% over the forecast period. Segmentation ...
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...Although rimless and full rim Nike prescription glasses perform the same function, they are quite different in their construction and stylistic impact. Among the qualities they share are that the right pair of either will make a positive style statement about the wearer. Both also convey the impression of success, intelligence, and trustworthiness about the person wearing them. However, the way they go about doing this is very different. Rimless glasses do this in an understated way that has the least visual impact, while full rim glasses make no attempt at being invisible. In fact, they are very much a part of the wearer's facial appearance. People opting for rimless may like the minimal impact these glasses have on their appearance. Other users of rimless glasses simply like the understated way that it enhances their attractiveness. Those who prefer full rim glasses may simply like their sturdiness, or like that they can add a stylistic look or vibe not possible without them, much like a hat does. Strength and Durability of Construction Three piece rimless glasses consist of two lenses joined together by a nose bridge that attach to the lens material via drilled holes. The temples likewise attach directly to the lens. Because the lens sees a lot of localized stress at the attachment points, tough lens materials such as polycarbonate or Trivex are used. Even so, rimless glasses are more fragile than full rim glasses, which completely enclose the lenses within their frames...
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...Case Studies CASE 2 RAY-BAN SUNGLASSES: SELECTING THE TARGET AUDIENCE AND THE COMMUNICATION OBJECTIVES Objectives The case has been prepared to help you to appreciate the following: What is an agency brief and what are its various components To profile the market Segments and select the most attractive by carefully analysing the interpreting consumer data Selection of communication objectives and development of a communication strategy to achieve a desired response. Structure 2.0 2.1 2.2 2.3 2.4 2.5 Objectives Introduction Agency Brief The Need Communication Strategy Discussion Questions 2.1 INTRODUCTION In this case an attempt has been made to help you to appreciate the campaign planning process. This case is in two parts. The first part is the agency brief, in which the company has tried to analyze the marketing problem. The company feels that because Ray-Ban is technologically superior in quality, and recognized by the consumer as such, a product change is not required. The brand is seen as expensive, but the same consumer does pay as much of a premium for top-end brands in other product categories. Therefore there is a need. for the communication to change this consumer perception. The second part of the case is on communication strategy as proposed by the advertising agency, has analyzed and described the complete `planning cycle'. 2.2 THE AGENCY BRIEF Ray-ban was launched in India in mid-1992. Today the brand is doing reasonably well, but still has...
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...Pina Bausch was born on July 27, 1940 in Solingen, Germany and is internationally known as the creator and the Queen of Dance Theater. Living in Solingen as a child, the city was experiencing a disastrous amount of destruction due to the war. She would hear sirens nonstop and always had a bag ready incase she and her family had to leave to avoid danger. Her parents owned a pub/hotel, where she and her siblings worked. As she worked she was always dancing around and was told by the customers that she must join a youth ballet group. Although her parents were never interested in dance and hardly ever saw her dance, she felt strongly loved and appreciated that she never had to prove anything to them and was completely trusted by them without a single guilt....
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...Famous Creative Thinkers – Steven Spielberg and Pina Bausch PHL/458 August 4, 2014 Professor Leon Hallingquest Famous Creative Thinkers Famous thinkers all have things in common that help them accomplish greatness during their lives. Creative ideas are the foundation of the creative process. When creative individuals run across a problem that needs to be resolved - this is when they start coming up with their ideas. Problems can have a variety of options for resolution. This paper will cover how film mogul Steven Spielberg and dancer Pina Bausch used their own creative process to motivate people into seeing different issues their way. Famous Creative Thinkers In this paper specific problems and ideas that these individuals sought to solve, and the plans they put into action to resolve these problems will be discussed. Each person’s social, personal, or political environments will be reviewed on how they contributed to their creativity. Additionally, the creative process of each person, including obstacles they faced and a comparison of their creative processes underlying each individual’s work will be reviewed. Lastly, a critique of their ideas will be reviewed answering the questions if they could have done anything differently and if their bodies of work fit into the existing framework of understanding in their respective fields and how their work advanced further understanding in their respective fields. Steven Spielberg Steven Spielberg has been a pivotal force...
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...Free Term Papers, Essays and Research Documents The Research Paper Factory Join Search Browse Saved Papers Search Home page » Business and Management Bausch & LombIn: Business and Management Bausch & Lomb Bausch & Lomb, Inc. (A) In the case of Bausch & Lomb, Inc., the company’s leadership style and business strategy led key financial preparers to show revenue on company financial statements when it should not have been recognized. The two main criteria for revenue recognition are: 1) the seller must have substantially performed its obligations to the customer; and 2) the seller must have obtained an asset from the customer that it can reliably measure. If the asset is not cash, the seller must be reasonably certain of converting it into cash. Only when these two criteria are met can the entity then recognize revenue in their financial system. The sector of Bausch & Lomb, Inc. that was affected by incorrect revenue recognition was conventional lens sales. Conventional lenses fall under the Medical Sector and more generally under the Healthcare segment of the company (Exhibit 1). Since contact lenses do not require additional obligations, such as services or warranties, from the company after they are purchased, once the lenses have been bought, revenue can be recorded. It is presumed that Bausch & Lomb, Inc. operates under an accrual basis of accounting which separates the recognition of revenue with the receipt of cash. Even when the company went to great...
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...manufacturer of sunglasses, founded in 1937 by Bausch & Lomb. Ray-Ban sunglasses............The World's Finest Sunglasses. In the late 1920's, the U.S. Army Air Corps approached Bausch & Lomb with an urgent request for an optical glass that would help fliers overcome the brutal glare of the sun. Responding to this need, Bausch & Lomb created the first Ray-Ban glass, which not only met, but far exceeded the exacting Air Corps standards. Today, Ray-Ban sunglasses are still manufactured to standards that produce the same level of excellence. Each pair provides full glare protection while preserving peak visual acuity. Ray-Ban sunglasses also provide 100% protection from the harmful effects of UV rays. Their finely ground and polished lenses are free of the waves, blemishes and other defects that can distort vision. The frames too are produced under the same code of quality. Each Bausch & Lomb Ray-Ban lens has been made from an absorptive glass that has been scientifically formulated to provide proper glare protection and light control. These glasses also provide 100% protection from ultraviolet rays and reduce the level of infrared light. USA B&L Ray-Ban lenses are of precision optical quality. They are made from optical glasses, noted for their purity, and are ground and polished so that they're surfaces are of the same high quality as fine eyewear lenses. The lenses are completely free of eye-straining waves or distortion. USA Bausch & Lomb is a professional eye-health care, vision...
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...Bausch & Lomb What is the impact of the new distribution and sales program on the Bausch & Lomb 1993 financial statements? Address why or why not you would consider the impact “material.” a.) Address not only the impact on sales revenue but also look at the impact on operating earnings (Both Income Statement Issues) and relevant asset balance sheet accounts. The impact on Sales Revenue as well as Operating Earnings is in our mind materially important when looking at the income statement. By selling inventory earlier then it would have in its normal business cycle Bausch & Lomb moved future sales into the current reporting period. In the short term Bausch & Lomb is exhibiting growth in sales revenue that is not really there. Operating Earnings derived from the Income statement is going to be greatly convoluted, and misunderstood by their decision to sell inventory earlier then it was needed. The cost of goods sold will be much higher then it normally would have under normal selling conditions, which could lead to many misunderstandings. Operational managers in the company who use sales and COGS as important indicators in producing goods for Bausch & Lomb may make poor forecasting calls when determining what and how much to make of particular products. Also potential future investors and current shareholders are given a misrepresentation of the true demand for Bausch & Lomb’s product and inventory control. From a balance sheet perspective the Accounts...
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...Thinking Critically 3.1 In 2002 Ronald Zarrella then CEO of Bausch & Lomb was discovered to have misrepresented the credentials on his resume. Mr. Zarrella then submitted a resignation letter. However, the board refused his recognition stating that a change in management was not in the best interest of this shareholders but that instead he would be deprived of the $1.1 million bonus for 2002. This along with many similar instances brought up the question, does the competitive pressure to get hired justify decision to boost your resume? No, you should tell the truth and let the company decide. In Mr. Zarrella’s case the company kept him even though he did not actually have the experience claimed. Many would argue that he may not have been hired...
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