...Investment Summary An Analysis of the Food and Beverage Industry by Alexander Raifeld Mark Gurfinkel Rajeev Rao Hao (Sara) Xi Shivanker Saxena Valuation results Campbell Soup Risk Characteristics Approach Beta Jensen's Alpha R squared Investment Performance ROE - COE ROC - WACC EVA (Millions) Capital Structure Current Debt rati o Optimal Debt Rati o Change in WACC Duration (Years) Dividend Policy Dividends (Millions) FCFE (Millions) Valuations Value/share Price/Share 259 428.0 27.45 29.5 0 -$37.0 20.09 30.25 76.70 231.0 35.6 34.4 0 128 38.5 48.7 892.4 309.5 40.5 34.7 B 0.94 0.12% 4% N/A 10.43% 106.5 23.97% 40% -0.15% 0.25 Cheesecake Factory B 0.63 26.97% 13% 7.08% 12.21% 74.46 13.17% 10% 0% 6.99 McCormick Starbucks Sysco B 0.85 8.8% 2% 19.88% 7.20% 422.4 10.08% 30.00% -0.45% 6.09 B 0.66 34.4% 6% 9.05% 2.82% 143 11.5% 20% -0.14% 3.65 B 0.58 7.27% 16% 26.13% 15.76% 690 6.6% 40% -0.47% 7.01 Chapter 1 Corporate Governance Analysis The purpose of this section is to understand the relationship between managers and stockholders Managers and Stockholders Chief Executive Officers CEO Name Age Years at the C ompany Years as CEO CEO Compensation Salary rank within Restaurant Industry Salary Bonus Other Stock Gains Campbell Soup Douglas Conant Cheesecake Factory David Overton 59 30 30 (founder) McCormick Robert J. Lawless 58 28 8 Starbucks Jim Donald 51 3 0* Sysco Richard Schnieders 55 23 2 53 4 4 14 0.9 1.5 1.8 6.6 >50 0.5 0.6 5.4 133...
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...Campbell Soup Company 1 Campbell Place Camden, NJ 08103-1701 March 23, 2011 Dear Colleagues: Mr. Edmund Carpenter; Mr. Paul Charron; Mr. Douglas Conant; Mr. Bennett Dorrance; Mr. Harvey Golub; Mr. Lawrence Karlson; Mr. Randell Larrimore; Ms. Mary Alice Malone; Ms. Sara Mathew; Ms. Denise Morrison; Mr. William Perez; Mr. Charles Perrin; Mr. A Barry Rand; Mr. Nick Schreiber; Mr. Archibold van Beuren; Mr. Les Vinney and Ms. Charlotte Weber, On behalf of The Distasio Consulting Company, we are deeply honored and privileged to conduct an in depth analysis of the business climate for the Campbell Soup Company. In this report, you will find a complete SWOT analysis, including the strengths, weaknesses, opportunities and threats of the company, an examination of the company’s stock ownership and a financial analysis through the last five years within the industry. The report includes a variety of inquiries that will prove to be imperative to survive in the corporate world. The analysis includes several studies including the environment in which Campbell’s operates in, the performance of the company based on its financial ratios, the performance of the company on the basis of the trend analysis of the financial ratios and Campbell’s Soup benchmarked against other competitors in the industry. Once again, our firm is greatly appreciative of this opportunity to work with your world-renown corporation. Campbell’s has been an industry leader for many decades and will continue...
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...ARNOTT’S, AUSTRALIA Executive summary: This paper consists of the product launch plan for Arnott snacks Australia for the woman segment as a healthy snack option. Table of Content Executive Summary 1.Introduction 2. Situation analysis 3. Justification for product launch: 4. Market segment(s) to be targeted & the planned positioning strategy 5. Demand estimate 6. Marketing mix strategy 7. Conclusion Reference 1. Introduction This paper is about the product launch by Arnotts which is one of the most reputed company in the Australian snacks market and largest in Asia-pacific region. The company has been serving its client with various snacks options from last 144 years. This is part of day to day lives of millions of people in Australia. The company’s website claims that “It is the icon of the Australia. Millions of Australians have grown up with ARNOTT’S during the past 144 years. This company has an efficient access throughout the Australia.” The strategic approach and innovative products have helped the company in maintaining the financial stability in its target markets. The company employs more than 2600 people at various positions in the form of direct employment. The expenditure on the Australian biscuits and snacks for the company is more than $350 million. Company has invested above $27 million for buying new ovens and equipments at one of its bakery in South Australia. The other investment was done in ARNOTT’S Huntingwood bakery in New South...
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...Case Summary Charlotte Beers at Ogilvy & Mather Worldwide (A) Ogilvy & Mather In 1948, David Ogilvy, a 38-year-old Englishman, sold his small tobacco farm in Pennsylvania and invested his entire savings to start his own advertising agency. David Ogilvy imbued his agency’s culture with the same “first class” focus that he demanded of creative work. Employees were “gentlemen with brains,” treating clients, consumers, and one another with respect. Revenues soared in the 1970s, culminating in record double-digit gains in the mid 1980s. The advertising industry boomed, and Ogilvy & Mather led the pack. Nowhere was the agency’s reputation greater than at is New York office, heralded in 1986 by the press as “the class act of Madison Avenue.” Advertising Industry Changes The booming economy of the 1980s shielded the advertising industry from the intensifying pressures of global competition. Companies fought for consumer attention through marketing, and advertising billings grew- on average, between 10% and 15% per annum. However, after the stock market crash of 1987, companies reconsidered the value added by large advertising budgets. Increasingly, many chose to shift resources from expensive mass media and print campaigns toward direct mail, cable, telemarketing, and sales promotion. “Beleaguered” Ogilvy & Mather As clients demanded lower costs and greater service, Ogilvy & Mather-like many large agencies at the time- was slow to make adjustments. In May 1989, WPP Group...
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...Licensed to: iChapters User Licensed to: iChapters User CONTEMPORARY AUDITING REAL ISSUES & CASES MICHAEL C. KNAPP SEVENTH EDITION MAKE IT YOURS! SELECT JUST THE CASES YOU NEED Through Cengage Learning’s Make It Yours, you can — simply, quickly, and affordably — create a quality auditing text that is tailored to your course. • Pick your coverage and only pay for the cases you use. • Add cases from a prior edition of Knapp’s Contemporary Auditing. • Add your course materials and assignments. • Pick your own unique cover design. We recognize that not every program covers the same cases and topics in your auditing course. Chris Knapp wrote his case book for people to use either as a core e book or as a supplement to an existing book. If you would like to use a custom auditing case book or supplement the South-Western accounting book you are currently using, simply check the cases you want to include, indicate if there are other course materials you would like to add, and click submit. A Cengage Learning representative will contact you to review and confirm your order. G E T S T A R T E D Visit www.custom.cengage.com/makeityours/knapp7e to make your selections and provide details on anything else you would like to include. Prefer to use pen and paper? No problem. Fill out questions 1-4 and fax this form to 1.800.270.3310. A Custom Solutions editor will contact you within 2-3 business days to discuss the options you have selected...
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...International Markets Bureau MARKET INDICATOR REPORT | MAY 2011 Pathfinder Report Global Packaged Confectionery Trends Source: Shutterstock Pathfinder Report Global Packaged Confectionery Trends EXECUTIVE SUMMARY Australasia (Australia and New Zealand) and Western Europe were the two biggest regional confectionery markets in 2010, with Australasia‟s sales increasing by almost 25% over 2009 figures. North America, Asia Pacific and Latin America confectionery markets have also maintained increasing sales of these products despite the global economic downturn. The recession has caused many consumers to sacrifice volume rather than quality, and to use confectionery as a reward or as a means to help alleviate stress. However, sugarized gum, milk chocolate tablets and boiled sweets confectionery are all being adversely affected by mounting consumer health concerns. Obesity and diabetes are major health issues that are increasingly affecting both the young and aging populations. In particular, the United States (U.S.), United Kingdom (U.K.), and Japan will stand to benefit the most from reduced calorie and low/no/reduced sugar content. When it comes to “healthy” confectionery, consumers tend to look for products benefiting dental and cardiovascular health, as well as low-calorie products that help assuage guilt over indulgence. We see this trend playing out with sugar-free gum which has been performing well globally, and is predicted to continue, particularly in emerging...
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...Dr. Pepper-Snapple Company Kim Hayes Deonta Samilton Jordan Narcisse Tori Wallar Professor Cary Accounting November 11, 2013 Section 2: Introduction Dr. Pepper-Snapple Group, Inc. 5301 Legacy Dr. Plano, TX 75024 Industry: Beverages (Non-Alcoholic) Sic Code: 2080- Beverages Major Products: Canada Dry (Ginger ale,) 7-up (lemon-lime,) A&W (Root beer,) Sunkist (Orange,) and Sun Drop (Citrus.) Competitors: Coca-Cola and PepsiCo. Stock exchange: 47.33 Ticker symbol: DPS Name of outside auditors: Deloitte & Touche, LLP SIC (Standard Industry Classification): 2080 Beverages * History: Today, Dr Pepper Snapple Group is one of the leading producers of flavored beverages in North America and Caribbean. The have 6 of the top 10 non-cola drinks, and 13 of their 14 leading brands are ranked in the top two of its flavor categories. The DPS market more than 50 brands of carbonated soft drinks, juices, teas, mixers, water, and other premium beverages. Dr Pepper Snapple group include: 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr. & Mrs. T mixers, Penafiel, Rose's, Schweppes, Squirt and Sunkist soda. We are able to thank DPS for inventing the first carbonated drink. In 1783, Jean Jacob Schweppes created the world’s first carbonated mineral water. Schweppes’s was the original inventor of this new product, shared his invention with a young pharmacist in Waco, Texas, named Charles Alderton. They both invented Dr Pepper in...
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...CONFERENCE PAPERS 165 What is the Impact of Corporate Governance on Organisational Performance?* Loizos Heracleous** Research on the importance of generally accepted ``best practices'' in corporate governance has generally failed to find convincing connections between these practices and organisational performance. We discuss research outcomes on the relationship between two such ``best practices'' (CEO/Chair duality and insider/outsider composition) and organisational performance, and find this relationship to be insignificant. We propose four possibilities for this tenuous relationship, that are not mutually exclusive: firstly, the possibility that ``best practices'' in governance are indeed irrelevant to organisational performance; secondly, that the operationalisation of theoretical concepts has low face validity; thirdly, that studies are too narrow, aiming to relate board attributes directly to organisational performance and ignoring other systemic factors; and lastly, the possibility that different types of organisations require different practices in corporate governance. Lastly, we address the methodological and substantive implications of each of these possibilities. Keywords: Corporate governance, best practices, performance, research methodology T he legal formation of limited liability companies in the UK in the eighteenth century has separated ownership from control of corporations (Fama and Jensen, 1983), where salaried managers ideally...
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...Riordan Corporate Compliance Plan Riordan Manufacturing Riordan Manufacturing is a global plastics producer with an employee base of 550. The company has projected annual earnings at $46million and is owned by Riordan Industries. There are different segments of the company but the major customers are the automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, bottlers, and appliance manufacturers. The company has recently undergone some strategic changes in manufacturing and marketing. Some of those recent changes are beginning to effect employee retention numbers. Situation Analysis Riordan Manufacturing has many issues and opportunities laid before them. The company must identify the proper issues in order to make the right adjustments. For the company to prosper, they must first take care of their employees. Issue Identification There are a myriad of issues that exist for Riordan Manufacturing. The company has gone through some recent structural changes because of the ever changing industry. Riordan decided to switch from an individual sales model to a team-based sales model. The issue with the above is that the individuals are used to being compensated solely based on their own performance; now there is apprehension about compensation at the team rate. Another issue is just the pay itself. Some managers are concerned that employees may take proprietary information and share it with competitors after leaving the company. Higher...
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... Sloan School Cambridge of Management Massachusetts Developing a Common Language About IT Risk Management George Westerman and Richard Hunter June 2009 CISR WP No. 377 A version of this paper will be published as “Developing a Common Language About IT Risk,” IESE Insight, Issue 1, Second Quarter 2009: 21–27. © 2009 Massachusetts Institute of Technology. All rights reserved. Research Article: a completed research article drawing on one or more CISR research projects that presents management frameworks, findings and recommendations. Research Summary: a summary of a research project with preliminary findings. Research Briefings: a collection of short executive summaries of key findings from research projects. Case Study: an in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education). Technical Research Report: a traditional academically rigorous research paper with detailed methodology, analysis, findings and references. CISR Working Paper No. 377 Title: Developing a Common...
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...Case 1: Specific Performance Remedy Denied on Equity Standard Campbell Soup Co. v. Wentz et. al. UNITED STATES COURT OF APPEALS THIRD CIRCUIT 172 F.2d 80 (1949) OPINION BY: GOODRICH The transactions which raise the issues may be briefly summarized. On June 21, 1947, Campbell Soup Company (Campbell), a New Jersey corporation, entered into a written contract with George B. Wentz and Harry T. Wentz, who are Pennsylvania farmers, for delivery by the Wentzes to Campbell of all the Chantenay red cored carrots to be grown on fifteen acres of the Wentz farm during the 1947 season . . . The contract provides . . . for delivery of the carrots at the Campbell plant in Camden, New Jersey. The prices specified in the contract ranged from $23 to $30 per ton according to the time of delivery. The contract price for January 1948 was $30 a ton. The Wentzes harvested approximately 100 tons of carrots from the fifteen acres covered by the contract. Early in January 1948, they told a Campbell representative that they would not deliver their carrots at the contract price. The market price at that time was at least $90 per ton, and Chantenay red cored carrots were virtually unobtainable. The Wentzes then sold approximately 62 tons of their carrots to . . . Lojeski, a neighboring farmer. Lojeski resold about 58 tons on the open market, approximately half to Campbell and the balance to other purchasers. On January 9, 1948, Campbell, suspecting that Lojeski was selling it "contract carrots," refused to...
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...information and necessary records. In this report the data and information we collected, we tried our best to make it meaningful and clear. In this report, whatever we experienced, we believe that it will help us in future. We are very happy to submit this report to you successfully. We therefore pray and hope that you will be kind enough to receive our report and hope it will satisfy you. Thank you Sir. Yours sincerely, NAME ID SIGNATURE 1. Tawsif Bin Maksud. 0910374 2. Kaptia Mumtahana. 0910330 1. Executive Summary: [pic] “To do a common thing uncommonly well brings success.” —Henry J. Heinz. The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of all U.S.-based food companies. Famous for our iconic brands on six continents, Heinz provides delicious, nutritious and convenient foods for families in 200 countries around the world. In more than 50 of those countries, we enjoy the number-one or number-two market position. [pic] [pic] PICTURE: HEINZ HEADQAUTER AND PLANTAND GENERAL OFFICE IN PITTSBURG Key Heinz markets are segmented as North American Consumer Products, U.S. Foodservice, Europe, Asia...
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...Colgate: Focused For Global Growth Speeding Powerful Brands Worldwide ■ Achieving Greater Profitability ■ Succeeding Together ■ 2001 Annual Report Another Year of Strong Performance Dollars in Millions Except Per Share Amounts 2001 2000 Change Unit Volume Worldwide Sales Gross Profit Margin Earnings Before Interest & Taxes (EBIT) Percent of Sales Net Income Percent of Sales Earnings Per Share, Diluted Dividends Paid Per Share Operating Cash Flow Percent of Sales Return on Capital Number of Registered Common Shareholders Number of Common Shares Outstanding (in millions) Year-end Stock Price ■ ■ ■ +5% $9,427.8 55.1% $1,834.8 19.5% $1,146.6 12.2% $ $ 1.89 .675 17.0% 29.7% 40,900 550.7 $ 57.75 $ $ $9,357.9 54.4% $1,740.5 18.6% $1,063.8 11.4% 1.70 .63 16.4% 26.4% 42,300 566.7 $ 64.55 +.7% +70 basis points +5% +90 basis points +8% +80 basis points +11% +7% +4% +60 basis points +330 basis points –3% –3% –11% $1,599.6 $1,536.2 Every operating division participated in the strong 5 percent unit volume growth. Colgate achieved its sixth consecutive year of double-digit earnings per share growth. All key profitability indicators set new records: gross profit margin, EBIT, net income, operating cash flow and return on capital. ■ ■ Continuing sales would have increased 5.5 percent if not for foreign currency translation. The dividend rate was increased by 14 percent in 2001. Colgate-Palmolive is a $9.4 billion global company serving people in more than 200 countries ...
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...Sloan WP No. 4485-04 2004 Massachusetts Institute of Technology. All rights reserved. Research Article: a completed research article drawing on one or more CISR research projects that presents management frameworks, findings and recommendations. Research Summary: a summary of a research project with preliminary findings. Research Briefings: a collection of short executive summaries of key findings from research projects. Case Study: an in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education). Technical Research Report: a traditional academically rigorous research paper with detailed methodology, analysis, findings and references. About the Center for Information Systems Research CISRMISSION CISR was founded in 1974 and has a strong track record of practice based research on the management of information technology. As we enter the twenty-first century, CISR’s mission is to perform practical empirical research on how firms generate business value from IT. CISR disseminates this research via electronic research briefings, working papers, research workshops and executive education. Recent and current research topics include: 2003 Projects ƒ Business Models and IT Investments ƒ Governing IT for Different Performance Goals ƒ Assessing Architecture ƒ Infrastructure as Variable Cost ƒ Managing IT Related Risks 2004 Projects ƒ Assessing the...
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...Overview of the Chapter In an uncertain competitive environment, managers must engage in thorough planning to find strategies that will help their organization to compete effectively. This chapter explores the manager’s role as both planner and as strategist. It discusses various elements of the planning process, different kinds of plans, strategy formulation, and the challenge of strategy implementation. This chapter also contains a detailed explanation of SWOT analysis and Michael Porter’s business level strategies. Learning Objectives 1. Identify the three main steps of the planning process and the relationship between planning and strategy. (LO1) 2. Describe the different levels and types of planning and how they lead to competitive advantage. (LO2) 3. Differentiate between the main types of business-level strategy and explain how they lead to competitive advantage. (LO3) 4. Differentiate between the main types of corporate-level strategies and explain how they are used to strengthen a company’s business-level strategy and competitive advantage. (LO4) MANAGERMENT SNAPSHOT: Different Ways to Compete in the Soft Drink Business To compete in the soft drink industry, both Pepsi and Coke decided to build global brands by manufacturing soft-drink concentrate and selling it in a syrup form to bottlers throughout the world. Pepsi and Coke charge a premium price for the syrup and invest part of the proceeds into advertising to build and maintain...
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