...DEVELOPMENT INSTITUTE OF SINGAPORE TASHKENT INTERNATIONAL TRADE FINANCE – INDIVIDUAL ASSIGNMENT Course Module Lecturer Due Date Weightage : Bsc (Hons) in Banking and Finance : International Trade Finance : Ms Ratna Devi : 5 November 2012 : 30% Assignment —Individual This assignment for the module International Trade Finance carries 30% of the overall assessment grade. Case under Observation: This is a case study of a U.S. company called Cossco, Inc, depicted in different scenarios 1 through 4, carrying a maximum of 70 marks. Each scenario is presented in a way that encapsulates the topics in your syllabus for International Trade Finance. Students are advised to closely read each scenario and understand the issues faced by the CFO and financial analyst. Recommendations are to be given in a logical and concise manner. __________________________________________________________ Scenario 1 20 Marks Cossco, Inc is a U.S based company that has been incorporated in the United States for three years. It’s a small company with total assets worth $300 million. The company produces a single type of product, golf clubs. Cossco during the boom time, has been quite successful. However, the demand for “IRONS”, the company’s primary product in the United States, has been slowly decreasing since last year. Cossco’s shareholders have been pressuring the company to improve its performance. Cossco produces high-quality golf clubs and employs a unique production process, but the prices...
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...MIA ICS Case Writing Group Case Study No. 3 WHY DON’T WE SELL THE CLUB? By Hur Tze Huan CA(M), FCMA(UK), CFP, MBA(UKM), Cert. Trainer The Club Releks Golf & Country Club (the Club) was one of the few members’ clubs in Malaysia. Its 4,000 plus members not only enjoyed golfing and other recreational activities of the Club, they were also each a part owner of the Club’s assets, including the land. The Club’s 36-hole course sat on 300 acres of prime land surrounded by residential and shop-office properties. In addition, the Club had accumulated a cash reserve of RM10 million over the years. This was placed in fixed deposits at several local banks. The organization structure of the Club was just like any other club or association. The President, Vice President, Honorary Secretary, Honorary Treasurer and 8 committee members made up the decision-making inner circle, called the General Committee (the GC). The GC was the equivalent to the board of directors of a company. The biannually elected GC members served on honorary basis. The Club operated on an annual budget of over RM10 million. The operation of the Club was complex. It employed a work force of more than hundred persons to run the day-to-day activities. The work force was headed by the General Manager (GM). Under him there were 11 functional departmental managers or executives. The departments were finance, food and beverages (F&B), golf operation, course maintenance, membership, administration &...
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...Callaway Golf Company Write-up Team Number: B6 Team Members: Chenyu Gu 00231 83681 Xizi Shen 00247 52182 Hui Shi 00226 01971 Xing Zhang 00253 54085 Zhengbang Zhang 00244 61131 Section Time: MW 10:30--11:45 Part I. Overarching Problems CGC, Callaway Golf Company, has always enjoyed a great reputation as one world-leading manufacturer of high-end golf clubs and accessories. It is specialized in its innovation of technology and premium quality products. However, in 1998, the magic started to fade and sales dropped, CGC experienced a loss of 27 million. During that time, CGC had several significant issues: its poor relationship with retailers, the growing R & D cost, and the problematic marketing strategy. First, retail stores are critically important to sales turnover. With a high turnover, CGC management team realized the product knowledge of retailers didn’t meet its expectations. Besides that, margin was another conflict between CGC and its retailers because CGC came up with critical finance policies which highly restricted retailers’ flexibility on setting up prices. In addition, CGC usually sold their products at higher prices than other companies in the same industry. Thus, it means that CGC has to keep developing and introducing new products in order to hold their old customers. Therefore, CGC has to spend much more on R & D to differentiate its products from other competitors. Moreover, Richard Helmester, who is in charge of CGC’s R & D department, believes...
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...resources not accounted for and reported in another fund (GASB); whereas business type activities must be reported in an enterprise fund if GASB codification criteria are met.in this case, there is no evidence that the golf course is finance with debt that is secured solely by pledge of the golf course revenue or that laws require fees to cover costs and capital charges (GASB). Hence, the golf course could be accounted for either fund, subject to administrative approval. Enterprise funds are used to account for business type activities that offer goods and services to the public for a fee. When a golf course is operated in an enterprise fund, there is an expectation that the fund will be self-supporting and also retain equity for capital maintenance. If a golf course is operated within a general fund, there no requirement to produce a net income; however taxpayers who do not utilize the golf course are often unhappy subduing the facility with tax dollars. If a government does subsidize wit tax dollars, it is important to demonstrate that the golf course provides public benefit to the community perhaps by offering free golf lessons to at risk youth or undertaking a marketing campaign that highlights the beauty of the public resource. B. Status quo: do the citizens support subsidies for the golf course? If the country selects this option, will administrators decide to maintain an enterprise fund, which may require subsidies from general fund revenues during periods of loss,...
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...Case study 1 – Cost of capital Arnold Athletic Supplies Case: Arnold Athletic Supplies, INC. is a stall, publicly held company located between Dallas and Fort Worth. Arnold manufactures a variety of supplies and small equipment used by players and coaches around the country. Over the past 15 years, Arnold has had particular success in the high school and junior college markets; its products can be found in most dressing rooms of football, and basketball teams throughout the Southwest and Midwest. Arnold is considering expanding into product lines. Its well established sales force will be able to handle supplies and equipment for sports such as swimming, golf and track through it’s a current activities in high school and junior colleges. The marketing manager and the director of finance have begun working on figures, related to the profitability of different athletic supplies and equipment. At this time, five possible markets have been identified and the likely return on a cash flow basis has been determined for each. Specific proposals have been drafted and will soon be available for internal distribution in the company. In the meantime, the president has been given the after tax internal rates of return for each proposal as follows: 1. Swimming Supplies, 11% return, medium risk 2. Golf Equipment, 13% return, medium-high risk 3. Golf Supplies, 6% return, medium-low risk 4. Track Equipment, 8% return, low risk 5. Track Supplies, 10% return, medium risk At a meeting...
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...Andrew Wolford BYS330 Principles of Finance Week Four Assignment March 4th, 2014 Chapter Ten Study Problem 10-4: (Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $80,000.00 and expected free cash flows of $20,000.00 at the end of each year for 6 years. The required rate of return for this project is 10 percent. a. What is the project’s payback period? Remember first that payback period is the number of years needed to recover the initial cash outlay related to an investment as is determined by the number of years just prior to complete payback + the unplaid-back amount at beginning of yearfree cash flow in year payback is completed. Here, simply enough, you just have to take the initial cash outlay of $80,000.00 divided by the incremental cash flow of $20,000.00. So, the payback period is 4 years. b. What is the project’s NPV? First, NPV or net present value is the present value of an investment’s annual free cash flow less the investment’s initial outlay. Present Value ______________________________________________________________________________ Free cash x Factor at 10 percent = Present Value ______________________________________________________________________________ Inflow year 1 $20,000.00 x 11+0...
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...INC. Strategy Diagnostic ClubWest Canada. (CWC) Case Diagnostic Role * Jack Trevino, President and CEO of CWC since 2001 and the driving force behind the aggressive growth strategy. CWC has issued shares to private investors but he and his four friends, who founded the company, retain control. Thus, Jack is accountable to the investors and other stakeholders for his decisions, and strategy creation and monitoring. * Present: shortly after March 2012, CWC has been running for 11 years, so Trevino retains the current vision of providing every member and guest the best possible experience. Current Situation * Positive organizational health (Appendix 1) and positive operating performance (Appendix 2). However, although the company is profitable and can meet its debt obligations, it may witness revenue declines in the future. Its customer, employees and key business processes are positive with high investor confidence. Overall, the firm is in a desired state and must be able to leverage its debt and sustain future growth as the firm continues to expand through acquisitions and developments * Business strategy (Appendix 3). CWC’s primary goal of revenue growth and maintaining 15% return on equity aligns to its strategy components: (1) Generate off-peak ancillary revenue such as hosting events to cover periods of slowing revenue growth (2) Continuously looking for opportunities to expand and develop golf courses and enter new markets such as ski resorts ...
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...Patricia Farrell Submitted on: October 2nd, 2013 Case: 2-1 To: Fabio & Fox Chartered Accountants Introduction: Wonder Amusements Limited (WAL) is a company that was incorporated as an amusement park and golf courses. Recently WAL invested into a sports franchise which has caused the relocation of parts of the business. Objective: A meeting with the chief executive officer (Leo Titan) has shed some light on possible accounting and audit practises that need to be looked at. There are notes that was taken during the meeting with Leo and observations which will be further analyzed. The appropriate reporting method used in the following analysis will be IFRS. Users/Stakeholders: There a many potential users of the financial statements prepared by WAL and they are: -Leo Titan – CEO, WAL - owners of, NSL - owners of, -Minority shareholders invested in WAL And NSL, Fabio and Fox accountants - they are audit partners, External users of the financial statements (such as potential investors), the government (many accounting issues that could violate standards). Analysis: First of all after the review of documents and as a result of various conversations there are a few issues that need to be addressed. The first issue is lenders to the arena are concerned that the arena could not generate special-use revenue and in turn risk their investment. This becomes an audit issue because the investors are providing a way to finance the arena but if the arena in turn cannot support...
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...Is Golf A Sport? ?? DeVry University Is golf a sport? You could say this it would be a stretch to call this a controversial issue, but whether golf is a sport or not has been endlessly debated for as long as there have been men sitting on barstools arguing about sports. The problem is that we live in a culture that constantly turns everything into measurable tests of will power and skill. So we decide to score non-competitive activities and that leaves us to wonder if the activity is a sport. As individuals, we rely on our own bias to guide us in making a determination if an activity is a sport. Because of these individual determinations you have a lot of people that will argue that golf is a sport and just as many people arguing that it is not a sport and just a game. Both sides of this argument are correct in their assumptions, golf can be defined both as a sport and as a game. Golf is a very difficult game; it requires precision and physical ability to play at a competitive level. To be a successful golfer you need to have a consistent golf swing that requires sound mechanics and precise timing. The swing is a very complex motion that requires coordination of 17 muscle groups. These muscle groups consist of muscles located in the hands, the wrists, the arms, the abdomen and the legs (McHardy, 2005). The overall swing consists of a back swing, a down swing and an upswing. All three of these parts of the swing must work in harmony to produce solid result. If something...
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...ABC GOLF EQUIPMENT CORPORATION MEMORANDUM FOR CEO FROM: CFO SUBJECT: Time Value of Money 12 OCT 13 This memo accompanies the Excel Spreadsheet labeled Case FIN 50 and is intended to explain the significance of the various formulae and how our decisions with finances affect our bottom line numbers. Every Time Value of Money Problem has either four or five variables, we typically will know three to four of these variables and thus will only need to solve for the one remaining variable. Lump Sum Present Value Any time we take an amount of money and receive an annual rate of return on it, we should see a standard/preset growth on the initial amount. As you can see under “required calculation #1”, we have two columns addressing two amounts of money: $100,000 and $200,000. As you can see, the rate and the number of years the rate is compounded has a dramatic affect on the required initial investment. The higher the rate and the longer the investment compounds, the less the required initial investment. Lump Sum Future Value If we were to invest a specific amount of money today, in theory it should grow to a larger value at some point in the future. The value at the future point in time is called the future value. In order to calculate the future value, we have to know the rate at which the investment will grow. This rate is referred to as the interest rate. We then must know the length of time that the investment will be held or the number of periods. Much like in the Present...
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...Environment Cultural and Social Environment Economic Environment Political and Legal Environment External Market Environment Technological Environment The Marketing Environment: Internal • It is about the company Company mission, structure and culture, financial situation, technology, production, quality control programs, R&D (research and development), relationship with suppliers/agents/customers. • Objectives should set the course – Should be socially and economically useful – Should organize to innovate, implement strategies – Should sustain profitability – Helps to have a mission statement • • It is about strength and weaknesses It is usually controllable. Hierarchy of Objectives Company Objectives Production Objectives Finance Objectives Product Objectives Marketing Objectives Place Objectives Personal Selling Objectives HR Objectives Promotion Objectives Mass Selling Objectives R&D Objectives Price Objectives Sales Promotion Objectives MGMT 120 Lecture Notes ©Professor Freddy Lee Resources vs Opportunities Limitation of resources ??? ?? ??? ?? Financial Strength Producing Capability and Flexibility Marketing Strengths The Marketing Environment: External • • • • It is about the macro-environment – Competition; – Macro-economy; – Technology; – Political and legal; – Social and cultural. It is about opportunities and threats It affects the company, as well as its suppliers and customers; It is usually uncontrollable. Competitive Environment...
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...international retailer and distributor of leading brand-names in lifestyle products. The Group covers a few key product categories: sports, golf and active lifestyle, fashion, watches, and beauty and cosmetics. Incorporated in Singapore in 1977, RSH Limited is one of Asia’s foremost sporting goods pioneers with a 32-year track record. The Group expanded its product base to include fashion in 2000, watches in 2005, as well as beauty and cosmetics in 2008. Today, RSH has expanded to five territories out of which Southeast Asia, North Asia, South Asia, the Middle East and South Pacific and has established in each of these regions a direct presence with full operations, offices and distribution centers. It is one of the largest Singapore-based retailers by revenue and is among the Top 5 Singapore companies in the Middle East by overseas revenue. As a marketer and distributor, RSH has distribution and retail rights to over 90 world-renowned brand-names that include and are not limited to brands such as Reebok, Puma, Nike, Adidas, Lacoste, Wilson and Speedo, for sports and active lifestyle products. RSH has a retail network of over 440 free-standing stores and 500 shops-in-shop in 11 countries, encompassing 45 different retail concepts. For sports, golf and active lifestyle, RSH Limited operates multi-brand retail chains such as Royal Sporting House, Golf House and Pro Shops; multi-brand specialty stores such as Stadium by Royal Sporting House and Studio R, and single-brand concept stores...
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...University Abstract This paper will address a financial comparison analysis for three like sportswear companies—Columbia Sportswear Company, Dick’s Sporting Goods and Big 5 Sporting Goods, Corporation. The analysis is conducted by leveraging three kinds of financial statistics used to spot issues in companies’ financial information—common size analysis and ratio analysis. The following is a synopsis of the three companies and their financial comparison. It will provide financial data that managers use to keep alert of anything that should be reporting to there top director of the company. Executive Summary The FINC 5880 course is charged to do a financial comparison of three for profit organizations that are publicly traded. Yahoo Finance will be used to retrieve the latest financial for the three companies. This study will compare and contrast the companies by providing background information. Financial statements provide businesses with the basic tools for determining how well their operations perform at all times. Many entrepreneurs do not appreciate that financial statements have a value that goes further than their use as supporting documents to loan applications and tax returns (Gitman, 2006). These statements are concise reports designed to summarize financial activities for specific periods. Owners and managers can use financial statement analysis to assess the past and current financial condition of their business, detect any existing financial problems, and...
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...marketing mix of the organisation in this case Marriott Corporation with their Birmingham represented hotel Forest of Arden, A Marriott hotel and Country Club, satisfies their target market’s needs. Threats and opportunities will be detailed from caring a PEST analysis and by recommending marketing mix changes in line with the target markets needs and wants. Target market and marketing mix Marriott’s target marketing strategies have been enhanced in its several categories of segmentation through the various brands. The different flagships of Marriott’s brands support the overall target segmentation by the hotel. The various facilities like Marriott’s Hotels and Resorts, Courtyard by Marriott, Renaissance Hotels, Fairfield Inn and several others form the core brands that serve customer needs in the various target market segments according to Marriott.com. Being part of the brand Marriott’s Hotels and Resorts the Forest of Arden focuses on business, leisure or group events. Location can be a way to target a certain market; this hotel is located just 4 miles from Birmingham Airport and International train station within easy access of the M6/M42 and M40 so a great part of their target market is represented by business customers Considering the close proximity to the NEC, UK's largest exhibition centre, another target market is covered by clients, who come to Birmingham for a specific event. As advertised on their website they target golf practitioners as well.(Marriot.com) ...
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...partner with. With golf alone, Woods helped Nike reach figures of over $650 million in products sold (CBS/AP, 2009). Other major sponsors that Woods partnered with included Accenture, AT&T, PETA, Gillette, and Gatorade. Each of these nationally and globally know companies decided to end their endorsement partnerships with Tiger Woods in the weeks and months following the post-Thanksgiving incident and increasing marital issues. The only sponsor that has continued to endorse Woods has been Nike (CBS/AP, 2009). The main reason for these companies parting ways with Woods is due to an emphasis in keeping their names in good standings. In any form of public relations, you always want to have your company or business looked at in a positive light. When CEO’s and presidents of Woods’s former sponsors made remarks as to why they had terminated their relationship with the sports icon, they all mentioned that it was imperative to put the organizations good name as the top priority. This has been most reflected by Accenture’s reason for dropping Woods (Hamblen, 2009). The consulting firm had seen an increase in revenue in the months leading up Woods’ public relations nightmare (Hamblen, 2009). Keeping Woods as the firm’s public figure could have led to a decline in the revenue they had just received. Keeping a company’s name and reputation in good standing is vital for working with business partners and audiences. For your audience to continue to support and help finance your company,...
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