...CASE STUDY: RATIOS AND FINANCIAL PLANNING AT S&S AIR 1. The calculations for the ratios listed are: Current ratio = $3,138,220 / $2,162,080 Current ratio = 1.45 times Quick ratio = ($3,138,220 – 1,238,500) / $2,162,080 Quick ratio = 0.88 times Cash ratio = $365,040 / $2,162,080 Cash ratio = 0.17 times Total asset turnover = $20,077,000 / $15,453,900 Total asset turnover = 1.30 times Inventory turnover = $14,985,000 / $1,238,500 Inventory turnover = 12.10 times Receivables turnover = $20,077,000 / $1,534,680 Receivables turnover = 13.08 times Total debt ratio = ($15,453,900 – 9,466,820) / $15,453,900 Total debt ratio = 0.39 times Debt-equity ratio = ($2,162,080 + 3,825,000) / $9,466,820 Debt-equity ratio = 0.63 times Equity multiplier = $15,453,900 / $9,466,820 Equity multiplier = 1.63 times Times interest earned = $2,038,000 / $362,000 Times interest earned = 5.63 times Cash coverage = ($2,038,000 + 655,000) / $362,000 Cash coverage = 7.44 times Profit margin = $1,005,600 / $20,077,000 Profit margin = 0.0501 or 5.01% Return on assets = $1,005,600 / 15,453,900 Return on assets = 0.0651 or 6.51% Return on equity = $1,005,600 / $9,466,820 Return on equity = 0.1062 or 10.62% 2. Boeing is probably not a good aspirant company. Even though both companies manufacture airplanes, S&S Air manufactures small airplanes, while Boeing...
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...Erdogan (Corresponding author) Department of Aviation Management, Faculty of Aeronautics and Astronautics Anadolu University, Eskisehir, Turkey Tel: 90-222-321-3550 / 6984 E-mail: dilekc@anadolu.edu.tr Ergun Kaya Department of Management, Faculty of Business Administration Anadolu University, Eskisehir, Turkey Tel: 90-222-335-05-80/ 2544 Received: Sep. 16, 2014 doi:10.5296/jmr.v6i4.6355 E-mail: ergunk@anadolu.edu.tr Accepted: Oct. 13, 2014 Published: October 13, 2014 URL: http://dx.doi.org/10.5296/jmr.v6i4.6355 Abstract The aim of this study is to analyze performance indicators used by airline companies within the framework of a performance and strategic management tool, namely, ’balanced scorecard (BSC)’, and to assess its applicability in the airline business. Designed as a multiple case study by collecting data from primary and secondary sources, the participants of this study are scheduled airline businesses operating in Turkey. The airline companies have been found to use similar performance indicators within the financial, customer-based, internal business process, and learning/growth perspectives of BSC. Airline companies are recommended to use BSC because it allows them to transform their strategies into measurable performance indicators and to assess their performance multi-dimensionally. Keywords: Strategic Management, Performance Management, Balanced Scorecard, Airline Industry, Performance Indicators 109 www.macrothink...
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...The expected monthly payments for the 30-year traditional and the 20-year traditional loan can be calculated using the Annuity present value equation (PVA). According to the case study for S&S Air, the loan officer states that, both the 30-year loan and the 20-year loan will have an APR of 6.1 percent. A portion of the PVA equation is based on the present value equation multiplied by the C dollars of the dollar amount borrowed (Ross, Westerfield, & Jordan, 2012). The set up for the equations are as following: PVA = C({1 – [1/(1 + r)]t } / r) $22,000,000 = C{[1 – 1 / (1 + .061/12)360] / (.061/12)} The number of payments for the loan will exist for 360 monthly cycles, derived by 30 years * 12 months = 360 And the monthly payments for the 20-year loan will be: PVA = C({1 – [1/(1 + r)]t } / r) $22,000,000 = C{[1 – 1 / (1 + .061/12)240] / (.061/12)} The number of payments for the loan will exist for 240 monthly cycles, derived by 20 years * 12 months = 240 The monthly payment for the 30-year traditional loan, calculated by the present value annuity equals $133,318.85. The 20-year traditional loan monthly payments equal to $158,886.65 when the present value annuity equation is applied. Reference Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2012). Essentials of corporate finance (Laureate Education, Inc., custom ed.). New York, NY: McGraw-Hill/Irwin. ISBN -...
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...SESSION: MARCH 2011-SEPTEMBER 2011 NIPS COLLEGE OF IT AND MANAGEMENT ALL AHABAD [Synopsis and Project Guidelines] MCA-6th Semester BCA-6th Semester PGDCA-2nd Semester And MBA-4th Semester IMPORTANT DATE S ynopsis Approval Last Date Project S ubmission Date MBA S ynopsis Approval Last Date MBA Project S ubmission Date : : : : 20/05/2011 27/07/2011 30/05/2011 10/08/2011 IMPORTANT INFORMATION MCA-6th S em Project Coordinator PGDCA-2nd S em Project Coordinator BCA-6th Sem Project Coordinator MBA- 4th S em Project Coordinator : Mrs Seema S rivastava : Mr.Gangesh Kumar :Mr.Deepak Mishra Ph:9451686685 :Mr. Jitendra Kumar Keswani Ph: 8081313153 SYNOPSIS GUIDELINE SYNOPSIS AND PROJECT GUIDELINES MCA- BCA- PGDCAMCA -6 BCA-6 & PGDCA -2 Synopsis Format 1. Introduction Of Project 2. Objective Of The Project 3. Scope Of The Project 4. Project Plan 5. The Existing System 6. Background Of The Organization 7. Current Problems 8. Areas For Improvement 9. Proposed System 10. Input/Output Requirement 11. Hardware And Software Requirement 12. Database Requirement 13. System Design 14. Tables And Fields For Database 15. Database Dictionary 16. E-R Diagram 17. ‘0’ Level DFD 18. ‘1’ Level DFD 19. Security Control 20. Future Scope Of The Project 21. Conclusion NIPS COLLEGE OF IT & MANAGEMENT ALLAHABAD Ph: 0532-3291133 th th nd 1 SYNOPSIS AND PROJECT GUIDELINES 22. Reference Or Bibliography Some Suggested Project Title 1. Bank Transactions Management 2. Hotel...
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...Economic Benefits from Air Transport in Nigeria Nigeria country report Acknowledgements Oxford Economics gratefully acknowledge the help that we received from the International Air Transport Association (IATA) in preparation of this report. Through a survey conducted by IATA many organisations across the aviation industry supplied us with data that has formed an integral part of our analysis. In addition, the Airports Council International (ACI) very kindly provided us data on the economic activities at airports. We would like to thank all these organisations for their generosity in supplying this data, without which this report could not have been written. A note on the data reported in the report Unless otherwise stated, the numbers reported in this report relate to the calendar year 2010. Oxford Economics 2012 v1.1 2 Nigeria country report Contents Facts & figures.......................................................................................... 4 1 1.1 1.2 Consumer benefits for passengers and shippers ......................... 7 Consumer benefits ..................................................................................... 7 Estimated consumer benefits ..................................................................... 8 2 2.1 2.2 2.3 Enabling long-term economic growth............................................ 9 Connectivity and the cost of air transport services .................................... 9 How aviation...
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...Introduction Air Asia has successfully been xpositioned itself in the market as one of the leaders in the airline industry in Asia with its technical strategies. It has a route network that spans through over 20 countries and is one of the low cost aviation services in Asia. The Business level strategy adopted by air Asia is cost leadership strategy. To gain its market share they focused on specific markets like domestic services, short and long haul regional services and selling their products below the average industry prices. Air Asia adopted a number of actions to compete in the industry. It launches the values added services which are to provide ticketless travel and implement a free seating policy. In 2007 air-Asia became the first airline in Malaysia to offer internet checking services that allowed all the passengers to print their own boarding passes and pay extra money to board first. So, by doing this the passengers can choose their seats easily. In addition, they can also pre-book their checked baggage and meals. This paper describes Air Asia’s each xstrategies that maintain its effective control of low cost/focus business level strategy. Air Asia’s structure, cultures and systems that are used to create loyalty of the customers and satisfied them to lead the organisation to be profitable. SWOT analysis is conducted to focus aspects of Air Asia and business sector. It also evaluates the current business, future prospects and the economic climate. Porter's five force...
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...Report of the Case Study Introduction Marks and Spencer (M&S) is a leading UK retailer selling clothing, food, and housewares. In 2007, the company put sustainability at the heart of its business. In order to succeed, it would have to change the attitudes and the behavior of its shoppers. As a result, it launched Plan A which set out a five year plan involving 100 social and environmental commitments that were expected to shape the future of the company. Plan A would allow the company to resolve some of the big issues facing their business. They called it Plan A because there is “no B when it comes to conserving the earth’s finite resources” (Marks & Spencer Website). Brief Background on Company In 1884, Michael Marks started the company by selling an assortment of goods in an open-air stall in Leeds, UK. In the 1920’s, the company went public and expanded into general merchandise and ready-to-wear clothing. By the 1970’s, the company had become a British icon and a household name. However, from the 1980’s to 1993 came the troubled years. Despite the expansion of its operations in the 1980’s, the retailer had failed to keep current with its shopper’s preferences and this led to financial woes. From 1994 to 2006, it was back to the basics for the company. By 1996, it had rebounded to become the UK’s most profitable retailer. However, this recovery was short lived, and M&S experienced a significant slump in business in 1999 which continued into the early 2000’s with profits...
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...Module 7, Course 2, Session 18 Growth Strategies - External March 9, 2013 Discussion Topics Section Introductions and Segment Objectives The Acquisition Process – Target Research and Process Execution Case Studies Concluding Thoughts – Keys to Success Background Information on John Dickinson Page 2 3 7 15 17 CONFIDENTIAL 1 Introductions and Segment Objectives Introductions: • • John Dickinson – Session Leader Participants – Goals, objectives, questions, and backgrounds CONFIDENTIAL Session Objectives: • Why pursue external strategies? • • • Limited organic growth versus strategic goals New products / services, end markets, technologies, and customers, as well as sourcing synergies What are some of the strategies? • • • Joint ventures – private and public / governmental Acquisitions Divestitures and re-investing in the core business The Acquisition Process: • • Strategic goals and target identification / research Deal execution – the team, valuation / structure, and culture / integration 2 CONFIDENTIAL The Acquisition Process – Target Research and Deal Execution 3 Developing the Optimal Acquisition Process CONFIDENTIAL Optimizing the process begins with analyzing the unique dynamics of the Buyer’s situation, and then developing an appropriate and flexible strategy for achieving the Buyer’s goals. Process Considerations Current End Market Dynamics & Outlook Parent Company Objectives & Resource Commitment Management Team Objectives...
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...Case Seminar Advanced Corporate Finance Tuesday 10:00 – 13:00, Room 23 Instructor: Tim Adam This case seminar discusses real-world business cases, which relate to the materials covered in Corporate Finance and Advanced Corporate Finance. The main topics are company valuation, capital structure, bankruptcy, corporate governance, project finance and corporate risk management. The main objective of the seminar is to apply the theoretical concepts of corporate finance and corporate governance to real-world situations. To do so we will discuss six Harvard Business School cases. In addition, there will be several company presentations of real-world business cases. This seminar has a high level of practical relevance, but it is also very labor intensive. Expect to spend at least eight hours each week on case preparations. Prerequisites All participants must have successfully passed Corporate Finance, and take Advanced Corporate Finance parallel or prior to this case seminar. Registration Students need to register for this seminar. Please submit your applications electronically (CV, most recent transcript) to Mrs. Bulwahn by April 8, 2016. If you do not attend the first session, your place may be given to other students on the waiting list. Evaluation Four case reports (80%), class participation (20%). Seminar attendance is obligatory. Course materials Cases can be purchased for a total cost of US$ 23.70 using a credit...
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...The changing landscape for Chinese small business: the case of ‘‘Bags of Luck’’ Lee Zhuang Lee Zhuang is a Principal Lecturer in Strategic Management at Staffordshire University, Stoke-on-Trent, UK. General background Company history ) in Chinese Pinyin, is located Founded in 1992, Bags of Luck (BoL), or Xingyun Bao ( in a small coastal town, Xiao Min Nan (XMN), in South Eastern Fujian province, People’s Republic of China, halfway between the coastal cities of Xiamen and Quanzhou. As an industrial park, XMN was created out of Yang’s oyster farming village with a population of just under 1,000. The name of the village derived from the fact that most of the indigenous villagers were descendents of a local Yang family. With its geographic proximity to and cultural similarity with Taiwan, XMN was developed at the beginning of the 1990s with the most advanced infrastructure with the aim of attracting Taiwanese investors to set up manufacturing facilities there to take advantage of cheap labour and tax incentives. After 20 years’ of explosive development, XMN has grown to become a bustling modern town hosting over 2,000 manufacturing firms, 80 per cent of which are foreign invested, with a working population of 500,000. Almost 100 per cent of the goods manufactured in XMN are labour intensive products designed abroad and exported to North America and the EU. The products made here include shoes, bags, clothing and small plastic kitchen utensils. In the early phase of development...
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...CASE ANALYSIS Southwest Airlines, Co. COMPANY NAME: Southwest Airlines Co. INDUSTRY: Regional Airlines COMPANY WEBSITE: www.southwest.com COMPANY BACKGROUND: Southwest Airlines was founded in 1967 (Yahoo Finance, 2012) and started out as an idea from Rollin King, a San Antonio entrepreneur of a commuter air service. The idea was a response to complaints from his banker about the expense and inconvenience of ground travel between the cities of Houston, Dallas and San Antonio, also known as the Golden Triangle (Dess, Lumpkin, & Eisner, 2010 page C194). King, wanting to bring the idea to fruition, pooled his money together with a San Antonio lawyer, Herb Kelleher, who later won many of the company’s legal and territorial battles, and they started Southwest Airlines. After four years of legal battles with major airlines while the company was still very new, Southwest Airlines (SWA) finally launched its first flight in 1971 and continued to run with the assistance of many key people. One of the key people who got the company on its feet was Lamar Muse, former CEO. Howard Putnam later took Muse’s place as CEO from 1978 to 1982 and was then replaced by Herb Keller who was previously Chairman of the Board. Under the influence of Keller and SWA’s “low-cost strategy” (Dess, Lumpkin, & Eisner, 2010 page C194), SWA expanded from flying to only 14 cities, but still earning $270 million, to later servicing 64 cities, all at low rates. SWA continues to be a popular...
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...Data and Information Author(s): Redman, Thomas C. Publication Date: 09/22/2008 Product Type: HBS Press Chapter Abstract: This chapter focuses on the current state of data and information quality in the typical organization. The author discusses seven common data quality issues, including poor data definition and organizational confusion. Real-life examples, such as the subprime mortgage meltdown, demonstrate the need for developing a keen eye for the roles that data play in your organization, including operations, delayed decisions, and misinformed strategies. Subjects: NO SUBJECTS(KEYWORDS) Length: 29p List Price: $6.95 BH087 Title: The 3R Framework: Improving eStrategy Across Reach, Richness, and Range Author(s): Wells, John D.; Gobeli, David H. Publication Date: 03/15/2003 Product Type: Business Horizons Article Publisher: Business Horizons/Indiana University Abstract: Identifying effective strategies for designing and implementing e-business initiatives has been a persistent challenge for both practitioners and academicians. A conceptual framework is needed for leveraging digital attributes based on three dimensions: reach, richness, and range. By defining and combining these three dimensions to create such an integrated e-business strategic framework, this article provides managers with a way to assess their current strategy, as well as a prescriptive direction for strengthening it. Subjects: Corporate strategy; Electronic commerce; Technology Length:...
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...Essay topic: why companies use currency derivatives? Currency derivative can be defined as a contract or financial agreement to exchange two currencies at a given rate or a contract whose value is derived from the rate of exchange of two currencies on spot (Shoup, 1998). Currency derivatives are developed and adopted to implement a strategy known as hedging, in which an organisation acquires a contract in order to offset an expected drop or rise in value of a position or future cash flow (Belk & Edelshain, 1997). This essay will outline the incentives and rationales behind an organisation that uses currency derivatives. There are three types of currency derivatives used in hedging, future contracts, forward contracts and options, although swaps are also commonly considered as a currency derivative (Shoup, 2008). These instruments are derived from a spot rate, which is the price of the “underlying currency” (Eiteman, Stonehill & Moffett, 2009). Options are normally more costly than future contracts and forward contracts, because options are rights rather than obligations to buy or sell a currency (gives buyers the right not to exercise the contract if the spot rate movement is not favourable) (Belk & Edelshain, 1997). Research in New Zealand indicates that 70% of currency derivative users used forwards, which are most prevalent currency derivative instrument (Chan, Gan & McGraw, 2003). This is possibly because forwards are easy to manage and understand and can be used in frequent...
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...employee ownership, that provides a long-term competitive return to our shareowners. UPS Mission Statement (Excerpt) UPS hubs in China as of 2009: Shanghai and Shenzhen FedEx hubs in China as of 2009: Guangzhou Figure [ 1 ] - Source: http://www.travelchinaguide.com/map/ Introduction June 18, 2004 marked the start of an important international trend in logistics and carrier services. The U.S. and Chinese government came to an agreement that allowed the development of air cargo hubs and landing rights for commercial airlines in China. This pact not only opened up extensive new opportunities for the airborne market in general, but gave FedEx and United Parcel Service (UPS) exclusive cargo transportation rights (Bruner & Carr, 2010). At the time, FedEx was winning the battle for China, with its Chinese volumes nearly doubling from 2003 to 2004. Despite this, rival UPS still held the title as the world’s largest package-delivery company, and had been active in China since the late 1980’s (Bruner & Carr, 2010). FedEx had only done business in China since 1995 (Roth). Because of the importance of China to the shipping and logistics industry, this paper uses the degree to which both FedEx and UPS achieved...
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...Malaysian Airlines Considering Privatization 10 Germany-Fully privatized and partially privatized 12 Privatization in United Kingdom 14 IMPLICATION OF PRIVATIZATION 16 RECOMMENDATIONS 17 REFERENCES 18 ABSTRACT This paper focuses on the privatization of airports in six different countries which are Argentina, Turkey, Germany, United Kingdom, Malaysia and Kenya. The analysis aims to highlight the objectives, implementation and the government rules towards privatization of airports. This paper also aims to identify to what degree privatization contributes to or enhances the performance of the airports. The study measures the change in any given indicator of performance whether the privatization on the airports are successful or not. For each country, privatization occurred by fully privatized or partially privatized with residual public ownership. Moreover, the study also stress on the implication of privatization towards the countries. One of the implication is it will reduce burden of the government to bear high expenses. Privatization programme also...
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