...has the firm performed? What accounts for the changes in valuation in Corning stock in Exhibit 2. * Competes in three operating segments: * Telecommunications (63% of Sales) * Advanced Materials * Information Display * Firm performed well until 2000 when the tech bubble burst. * Stock price dropped due to falling demand for fiber optics, cable systems, and other high-tech equipment the company produced. * US Telecom Index peaked at over 1,300 in December 1999, fell to 630 in December 2001. 2) Why does Corning need to raise capital? How has the firm raised capital in the past? Why might it be difficult or undesirable to raise equity now? Debt now? * Need to raise capital to invest in future growth and to preserve the balance sheet: * $2 Billion revolving credit line requiring maintaining a Debt to Capitalization ratio of 60% or less. * Previously used conventional methods: issuing bonds, common stock, commercial paper etc. * Why not equity: Stock price is extremely low currently due to tech bubble so corning would not receive a large amount of cash. * Issuing equity would further depress stock price * Why not debt: Recently downgraded to junk, so any debt issued would be very expensive. Also, issuing debt would increase debt/capital ratio, which could result in the line of credit being lost. 3) What is the theoretical value of the Corning mandatory preferred convertible described in Exhibit 10? 4) Is the...
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...Corning Glass Company is an old company founded in the US, specifically in Massachusetts that manufactured glass, ceramic, and related materials usually on an order basis, which means it did not had a determined market other than satisfying particular demands from its customers and taking opportunities manufacturing Original Equipment for larger companies. Corning Glass was established in Corning, New York in the mid 1800s. Corning Glass’s operations were in Corning but as the company grew they opened plants and sales offices throughout the country. By 1968, most of their 40 plants were located east of the Mississippi River. Most of them were headquarters but two of their major divisions were in Corning. (Beer, M. 1983) The Electronic Products Division was one of the eight line’s division in Corning Glass Woks. Their reputation was based on their high technological capability in the invention and manufacture of glass products. Some of the products the electronic division manufacture included glass lenses for optical use, laboratory glassware, refractories in a wide variety, some products for kitchen use such PYREX, well known for many people because of the good product qualities for kitchen use. (Beer, M. 1983) When the market became more competitive its Electronics Products Division (EDP) started having some organizational problems because of the lack of growth. It all started when the profits became decreasing and in 1968 Mr. Joe Bennett took the leadership recently (in 1966)...
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...Corning Inc. To: From: Subject: Recommendations for the three proposals Corning Inc.’s strategy – to compete in four worldwide business sectors (communications, laboratory sciences, consumer housewares, and specialty materials) and to deliver long-range superior economic benefits to its employees, consumers, communities, and shareholders – has served the organization well for over three decades as evidenced by a transformed business portfolio, record earnings, and the emergence of a new spirit within the organization. However, due to diverse changes in trends that characterize the industry’s landscape, there is the need to come up with innovative proposals that originate from diverse business sectors. The CEO of Corning Inc. hopes that these proposals would aid in the company’s continual growth. These proposals deal with (a) the laboratory sciences, (b) communication (fiber optics), and (c), the television glass division. The opinions given are a result of a comprehensive deduction of the Porter’s Five Forces model so as to identify the best paths of actions to achieve a proper competitive advantage in the industry. For the first proposal, I think it is vital that Corning maintains its relationship with Ciba Geigy. Ciba Geigy has portrayed a strong commitment to the partnership’s success as evidenced by its willingness to preserve with significantly low returns over the next few years as the venture continues to grow. Furthermore, it has a good strategic fit with Corning Inc...
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...clients and incompetency. Dow Corning used bankruptcy as way of avoiding its obligations through deceit and fraud. Ethical Pressures Penn Square Bank was a small bank in Oklahoma City with $35 million (UOPX, 1985) in assets. In the late 70s there was an oil boom in Oklahoma State. Penn Square Bank was not going to be left out; they hired Bill Paterson to head the energy lending department with connections, and some hard work Bill was able to succeed momentarily. Penn Square Bank was making multimillion dollar loans to local energy prospects and selling the loans to large bank (UOPX, 1985). Large banks such as Chase Manhattan, and Continental Illinois Banks were purchasing unsecured loans from Penn Square Bank. The price of oil fell drastically from 1981 through 1982 and Penn Square Bank was facing bankruptcy. Penn Square Bank officials were approving loan contracts without checking the credit of these potential lenders; they would even extend credit to oil companies and accept drilling rigs as collateral. Penn Square bank should have done more research on the oil business; this would have given the bank some inside on how the oil business operates. There were no considerations of professional ethics bankers were not requiring clients to make a substantial down payments for their loans. Penn Square Bank was becoming the laughing stock of the banking industry until the FDIC declared Penn Square Bank insolvent. Bankruptcy Dow Corning was established in 1943 and in...
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...------------------------------------------------- B222B – Strategic Management of Technology and Innovation ------------------------------------------------- TMA – Spring 2015-2016 I- INSCTRUCTIONS II- CASE TO STUDY III- QUESTIONS IV- GRADES DEDUCTION V- AOU POLICY ON PLAGIARISM VI- PT3 FORM I- INSCTRUCTIONS: * Cut-off date: Submit this assignment no later than May 3, 2016. All late submissions require approval from the branch course coordinator and will be subject to grade deductions. * Learning outcomes: The purpose of this assignment is to support students’ understanding and application of different concepts learned in B222B, mainly in Chapters 2 and 3: the process of managing technology and innovation, the importance of technology and innovation to business and to society, MTI in strategic management, technology stages and planning. * Word count: you should discuss the questions in no more or less than the number of words mentioned for each question (plus or minus 10%). * Referencing: You must acknowledge all your sources of information using full Harvard Style Referencing (in-text referencing plus list of references at the end). Use E-library: to get journal articles on the topic (Emerald, EBSCO…). Use at least 2 articles. * Plagiarism: Remember that you should work the information from references into your own original thoughts and INTO YOUR OWN WORDS. Plagiarism will lead to a significant loss of marks. Extensive plagiarism could...
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...Innovation Planning: Corning Case-Study Reviewing Corning internal processes demonstrate the internal capabilities the firm continuously developed to enhance its innovation process, in terms of planning, implementation and ultimately delivering on innovative products. Innovation by definition is crucially important in these dynamic and rapid changing markets. However, continuous and sustainable innovation remains difficult to most organizations. In all practical terms, it is clear that a huge reliance in consistent innovation depends upon the creative capacity of individuals to come up with new ideas that is compelling and implementable. A second aspect is the ability of organizations to organize and institutionalize the innovation process, from a managerial and technical ways. Since 1908, the firm recognized the need for Research and Development as a way for not just survival of the firm, but as a mean to prosper and dominate its target markets. Starting the R&D as early as the nineteenth century in Silicon Valley enabled the firm to build upon its proven expertise in glass industry to today’s innovative products in fiber optics and flat screens. The firm had adopted internal policies that boost its innovative capabilities supported by commitment to invest 10% of the firm revenues in R&D, and hiring of world experts to its R&D division. Innovation is intrinsically risky. A firm could invest money and efforts, to generate, discover, and build up new ideas into innovations...
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...based market. Corning did not know if they wanted to be in this market. Some of the internal technical leaders were willing to turn away from this market claiming Corning developed high margin and highly technical products. Mean while sales and marketing were pushing hard to win new work in these fields disregarding the fact that Corning was not designed to compete in a fast moving commodity market. So, although sales were down Corning still relied on making their profits with out competition pressures. They relied on patents, technical know how and substantial capital investment joint. Corning started to see problems when its sales force started to focus on volume of sales without a concern for gross margins. The Sales group booked as many orders as they could to meet sales goals. Sales were giving away the store, claimed manufacturing. Marketing was just as bad. They projected a market for a product, had manufacturing make samples and spend on capital investment, only to come back later and say the market is not ten million, but, one million. Marketing claimed manufacturing was to slow to react to market conditions. Marketing clamed Product Development wasted time, up to seventy percent of product roll out was spent on process development. What happened was the trust that is necessary for departments to be able to work closely together went away. Through all of this lack of leadership, the company still held monthly meetings. Represented at these meetings in many cases were managers...
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...Investments Fall 2014 Case Discussion Questions Instructor: Professor Edward H. Chow 周行一 Case study: financial bubble Case: Trouble with a bubble (9-808-067) 1. Why did Irving Fisher believe that stock prices had reached a permanently high plateau? 2. Why did the stock market crash in 1929? 3. Why did influential individuals like Fisher, Keynes and Rockefeller believe that the downturn would only be temporary? Case study: investment banking business and global financial crisis Case: Investment banking in 2008 (A): Rise and fall of the Bear (KEL378) 1. What role did Bear’s culture play in its positioning vis-à-vis its competitors, and what role might that culture have played in its demise? 2. How did Bear’s potential collapse differ from that of LTCM in the eyes of the Federal Reserve? 3. What would Bear have done differently to avoid its fate? A. - In the early 2000s? B. - During the summer of 2007? C. - During the week of March 10, 2008? 4. Who stood to benefit from Bear’s implosion? 5. Is market perception of liquidity more important for an investment bank than it is for an traditional manufacturing or distribution business? If so, why? 6. How could Bear have addressed perceptions of its liquidity? Could it have stopped the run on the bank, and if so, how? 7. Did Bear’s failure undermine the viability of so called “pure-play” investment banks? 8. What role should the Fed play in maintaining order in world securities markets? Case: Investment banking...
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...system FoxMeyer’s plans did not work out. (ES), SAP R/3. At the After its major customer, Phar-Mor, if a system time of its R/3 imple- implementation went bankrupt in May 1993, mentation, beginFoxMeyer signed a major new cuswill be ning in 1995, Dow Corning Incorporated successful? tomer, University Healthsystem Conwas a $2.5 billion producer of silicone sortium (UHC). However, the contract products. The company was facing comrequired major changes to the project. petitive pressures as well as lawsuits worth Costs soared to over $100 million; and $2 billion due to well-publicized problems with sili- in August 1996 FoxMeyer filed for Chapter 11 bankcone breast implants. Existing systems were frag- ruptcy protection, after taking a charge of $34 milmented and focused on specific departments, making lion the previous month for inventory and order it difficult to present a common face to the cus- mix-ups. Following liquidation of its major assets in tomer.The company decided that its survival November 1997, FoxMeyer’s trustee sued Andersen depended on reengineering its business processes to Consulting, SAP, and Deloitte for $500 million each become a truly global company, an objective it in July and August 1998. The case against Deloitte believed could be met only with appropriate informa- was dismissed in May 1999. tion systems. It created Business Processes and InforThere are many reports of software project failures. mation Technology (BPIT) to support reengineering...
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...needs of training and human resource practitioners and gives them products to do their jobs better. We deliver proven ideas and solutions from experts in HR development and HR management, and we offer effective and customizable tools to improve workplace performance. From novice to seasoned professional, Pfeiffer is the source you can trust to make yourself and your organization more successful. Essential Knowledge Pfeiffer produces insightful, practical, and comprehensive materials on topics that matter the most to training and HR professionals. Our Essential Knowledge resources translate the expertise of seasoned professionals into practical, how-to guidance on critical workplace issues and problems. These resources are supported by case studies, worksheets, and job aids and are frequently supplemented with CD-ROMs, websites, and other means of making the content easier to read, understand, and use. Essential Tools Pfeiffer’s Essential Tools resources save time and expense by offering proven, ready-to-use materials—including exercises, activities, games, instruments, and assessments—for use during a training or team-learning event. These resources are frequently offered in loose-leaf or CD-ROM format to facilitate copying and customization of the material. Pfeiffer also recognizes the remarkable power of new technologies in expanding the reach and effectiveness of training. While e-hype has often created whizbang solutions in search of a problem, we are dedicated to bringing...
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...Fall 2010 Case Discussion Questions Instructor: Professor Edward H. Chow 周行一 Case study: financial bubble Case: Trouble with a bubble (9-808-067) 1. Why did Irving Fisher believe that stock prices had reached a permanently high plateau? 2. Why did the stock market crash in 1929? 3. Why did influential individuals like Fisher, Keynes and Rockefeller believe that the downturn would only be temporary? Case study: investment banking business and global financial crisis Case: Investment banking in 2008 (A): Rise and fall of the Bear (KEL378) 1. What role did Bear’s culture play in its positioning vis-à-vis its competitors, and what role might that culture have played in its demise? 2. 2. How did Bear’s potential collapse differ from that of LTCM in the eyes of the Federal Reserve? 3. What would Bear have done differently to avoid its fate? a. - In the early 2000s? b. - During the summer of 2007? c. - During the week of March 10, 2008? 4. Who stood to benefit from Bear’s implosion? 5. Is market perception of liquidity more important for an investment bank than it is for an traditional manufacturing or distribution business? If so, why? 6. How could Bear have addressed perceptions of its liquidity? Could it have stopped the run on the bank, and if so, how? 7. Did Bear’s failure undermine the viability of so called “pure-play” investment banks? 8. What role should the Fed play in maintaining order in world securities markets? Case: Investment...
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...Business Process Re-engineering Originally published as ETHIcol in the IMIS Journal Volume 6 No 2 (April 1996) Much has been written about the success and failure of Business Process Re-engineering (BPR). Leadership, organisational, cultural and people issues have been identified as the major obstacles in achieving BPR success. Without doubt, there will be winners and losers in this activity. There is evidence to suggest that BPR errs on being socially insensitive and perhaps this is why most re-engineering efforts have had little measurable impact on the overall business. Consequently, it is important that organisations about to embark on such programmes are fully aware of the potential impact on individuals, groups, and society as a whole. Given the major impact that BPR has on an organisation and that this impact involves the generation, dissemination and use of information to sustain the redesigned processes it is inevitable that IT has a central role in this activity. For example, telecommunications often figures in reducing co-ordination costs or increasing the scope of co-ordination, and shared databases are commonplace in the provision of information across and during processes. Within BPR there are numerous activities and decisions to be made and most of these will have an ethical dimension. There are issues relating to both the process and the outcome of BPR. In his recent book, The Re-engineering Revolution - The Handbook, Michael Hammer sets out 10 guidelines based...
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...Solution Manual Chapter 1 - Accounting for Intercorporate Investments 1. a. If the investor acquired 100% of the investee at book value, the Equity Investment account is equal to the Stockholders’ Equity of the investee company. It, therefore, includes the assets and liabilities of the investee company in one account. The investor’s balance sheet, therefore, includes the Stockholders’ Equity of the investee company, and, implicitly, its assets and liabilities. In the consolidation process, the balance sheets of the investor and investee company are brought together. Consolidated Stockholders’ Equity will be the same as that which the investor currently reports; only total assets and total liabilities will change. b. If the investor owns 100% of the investee, the equity income that the investor reports is equal to the net income of the investee, thus implicitly including its revenues and expenses. Replacing the equity income with the revenues and expense of the investee company in the consolidation process will yield the same net income. 2. FASB ASC 323-10 provides the following guidance with respect to the accounting for receipt of dividends using the equity method: The equity method tends to be most appropriate if an investment enables the investor to influence the operating or financial decisions of the investee. The investor then has a degree of responsibility for the return on its investment, and it is appropriate to include in the results of operations...
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...Schwartz’s 10 values are driving the behavior of managers at Bain and Company, Home Depot and Best Buy. At Bain & Company they seem to be driven is driven by achievement and power. The CEO is using the downturn of the economy to “grab very talented people” Kreitner and Kinicki (2013). This means that people will be looking for work and may be willing to take a lower salary. They also show stimulation. Even though they are in the midst of downsizing they are still finding ways to expand, when people are new to a job they bring a wealth of excitement to that job. In the case of Home Depot it seems as if benevolence and universalism are being exhibited. The CEO Frank Blake tries to boost moral by lowering the sales and profit targets that hourly employees were to meet to receive bonuses. This was met with an unimaginable response when a higher amount of achievement by the staff than ever before was generated, here we see Security at play since there is a reciprocity (“You take care of me, I take care of you”). Home Depot appeals to the values tradition and security. Even though they downsized the number of employees, they made a huge effort to help the current employees. At Best Buy we see self- direction at work as the employees are part of the solution as they searched for ways together to cut cost. This act by the company shows appreciation for the contributions of the employees. This helps with employee morale, the employees feels apart of the team when the can contribute...
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...Fudan – MIT China Lab Projects 2015 – 2016 1. Dow Corning: The customized market study & opportunity digging of China’s infrastructure construction industry for Dow Corning, China Company Information 公司信息 Name of Company/ Business Unit 公司/事业部名称 Website 网址 Address 地址 Dow Corning (China) Holding Co., Ltd. 道康宁（中国）投资有限公司 www.dowcorning.com www.dowcorning.com.cn dowcorning.tmall.com No.1077 Zhangheng Road, Zhangjiang Hi-Tech Park， Pudong District, Shanghai 201203 , P.R.C. 中国上海市浦东区，张江高科技园区，张衡路1077号，邮编： 201203 Company Background 公司背景 Established in 1943 specifically to explore and develop the potential of silicones, Dow Corning is a global leader in silicon-based technology and innovation. We are passionate about silicon technology’s versatility, its possibilities and its unique potential to help solve some of the most important challenges facing our world. Brief Introduction 公司简介 Stage of Development Through our Dow Corning® and XIAMETER® brands, we provide performance-enhancing products and solutions to meet the needs of customers in virtually every major industry and to improve the daily lives of nearly a billion of the world’s people. More than half of our annual sales are outside the United States. Dow Corning Corporation is equally owned by The Dow Chemical Company and Corning, Incorporated. Dow Corning also is the majority shareholder in Hemlock Semiconductor Group, which is comprised of several joint venture companies. Hemlock Semiconductor is a leading provider of polycrystalline...
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