...Introduction Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Hampton's customer base is made up primarily of military aircraft manufactures and automobile manufacturers in the St. Louis area. Hampton felt the boom in the 1960 with record setting profits in the mid to late 1960. Hampton slowed down in the 1970s with the withdrawal from Vietnam War and the oil embargo. Hampton stabilized by the late 1970s and now has a larger market share, as other competitors were unable to make it through those tough times. Hampton’s conservative financial policy helped the firm to weather the business cyclical fluctuation in capital goods industry, and had no debts on its balance sheet during ten years prior to 1978. Traditionally, the company had kept its cash balances at St. Louis National Bank. President of Hampton is Mr. Benjamin G. Cowins. He is 58 years old, widely respected, energetic, successful and was a successor to his father in law. Problem It is now September 14, 1979; President of Hampton Mr. Benjamin G. Cowins has asked Mr. Eckwood for an extension to the end December 1979 on the $1 million loan they took out from the St. Louis National Bank at the end of December 1978. The loan was originally taken out on the terms of monthly interest payment at a rate of 1.5% with the principle to be paid back at the end of September 1979. Hampton also has asked for an additional $350,000 loan to also be repaid at the end of December 1979 with interest payments...
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...On September 12, 1979, Hampton Machine Tool Company (HMTC) requested from St. Louis National Bank a renewal to their loan of $1,000,000 due to be repaid on September 30, 1979 and also to be given an additional loan of $350,000 for new equipment purchases in October 1979. Both loans were to be repaid on December 31, 1979. Hampton M.T. Company wrote a letter to the St. Louis National Bank stating the reasons for the extension of the loan and the need of the additional loan, and giving the current and the predicted future financial position of the company. In order to decide whether to approve the loan extension and the additional new loan, it is most wise to examine the financial position of the company for the following months to come and calculate the forecasted Income Statement and Cash Flow Analysis to find out if the company will have the required cash flows to repay their loan and interest on time. It is important, however, to first examine why HMTC was unable to repay its initial loan. Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase, for which the loan was initially requested, was a major cash disbursement of $3 million. In the period between November 1978 and August 1979, stock repurchase represented 58% of total expenditures for that period, while inventory purchases represented 42% of total expenditures. They also had a difficult time repaying because of the steep decline...
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...On September 12, 1979, Hampton Machine Tool Company (HMTC) requested from St. Louis National Bank a renewal to their loan of $1,000,000 due to be repaid on September 30, 1979 and also to be given an additional loan of $350,000 for new equipment purchases in October 1979. Both loans were to be repaid on December 31, 1979. Hampton M.T. Company wrote a letter to the St. Louis National Bank stating the reasons for the extension of the loan and the need of the additional loan, and giving the current and the predicted future financial position of the company. In order to decide whether to approve the loan extension and the additional new loan, it is most wise to examine the financial position of the company for the following months to come and calculate the forecasted Income Statement and Cash Flow Analysis to find out if the company will have the required cash flows to repay their loan and interest on time. It is important, however, to first examine why HMTC was unable to repay its initial loan. Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase, for which the loan was initially requested, was a major cash disbursement of $3 million. In the period between November 1978 and August 1979, stock repurchase represented 58% of total expenditures for that period, while inventory purchases represented 42% of total expenditures. They also had a difficult...
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...Aaron Louison FIN 242f (1) Credit Risk Analysis Prof. David Ray 6/1/16 Short form analysis – Hampton Machine Tool Company Business and Strategy Hampton Machine Tool Company is in the capital goods industry supplying aircraft and automobile manufacturers with machine tools. Located in St. Louis and founded in 1915, Hampton is a direct supplier of military purchasers, both domestic and abroad, while also supporting regional automobile companies. This industry, and Hampton’s customer segment is often affected by economic factors from gasoline prices and government spending, and while both are unpredictable, their conservative financial policies have enabled Hampton to survive and thrive amid uncertainty in the market. Hampton’s conservative position enabled it to weather the recession of the mid-1970s while it eliminated some of its competitors, thus increasing its market share. The most recent loan from St. Louis National Bank was the first debt that Hampton had added to its balance sheet since 1968. Due to the recent recession, Hampton has been unable to purchase new equipment which has contributed to its issues in producing at capacity. Profits have been high, there is a backlog of sales orders representing about 90% of annual capacity in August, most from respected and trustworthy customers. Hampton currently retains a high cash position, but 99.5% of it is obligated as a cash advance to a customer whose order is expected to ship over the next three months. Reflecting...
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...Hampton Machine Tool Company On September 14, 1979, Mr. Jerry Eckwood, vice president of the St. Louis National Bank was considering a loan request from a customer located in a nearby city. The company, Hampton Machine Too] Company, had requested renewal of an existing $1 million loan originally due to be repaid on September 30. In addition to the renewal of the existin- loan, Hampton was asking for an additional loan of $350,000 for planned equipment purchases in October. Under the terms of the company's request, both loans, totaling $1.35 million, would be repayable at the end of 1979. Since its establishment in 1915, Hampton Machine Tool Company had successfully weathered the severe cyclical fluctuations characteristic of the macl-tine tool manufacturing business. In the most recent cvcle, Hampton had experienced record production and profitability during the niid- and late 1960s. Because Hampton's major customers included the aircraft manufacturers and automobile manufacturers in the St. Louis area, the company's success in the 1960s reflected a strong automobile market and the heavy defense spending associated with the Vietnam War. Hampton rode the 1960s boom into the early 1970s. Hampton, along with the rest of the capital goods industry, experienced a severe decline in sales and profitability in the rriid-1970s. Precipitous declines in the production of automobiles in St. Louis facilities reflected the Arab oil embargo, subsequent increases in the price of...
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...CORPORATION WRITTEN ANALYSIS AND COMMUNICATION (WAC) NISHANT GADIA FSB-1 26TH August 14 SANDS CORPORATION LETTER OF TRANSMITTAL August 9, 1961 President, Sands Corporation Clairmont, USA Dear Sir, Enclosed is the report on “The Establishment of New plant”. This report examines the problems, options available and the different scenarios dealt with. Various factors have been taken into consideration for an attempt to take a wiser decision. I hope you find this report satisfactory and help you in taking wiser decision. Regards Vice President Manufacturing EXECUTIVE SUMMARY Sands Corporation was established in 1941 with an aim to manufacture range of parts for the aircrafts, automotive and agriculture equipment industries. The main plant and executive office is situated in Clairmont. Sands Corporation has one main plant and two branch plants which are in small towns 60 miles apart and approximately 200 miles from the main plant. In August 1961 Sands Corporation won a bid for the contract of military aircraft parts manufacturing. This has led to the decision of setting up a new plant to satisfy the contract given to them. So Sands Corporation came up with two plant sites, one is in the industrial area of Clairmont and the other option they have looked up for as a site is Hampton. The main motive of the Corporation is to select a site which is competent enough, has abundant amount of resources and produce higher margin of profits. SITUATIONAL ANALYSIS In 1962 Sands...
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...Problems Facing Hampton • Hampton seeks to renew its current $I million note payable by 3 months, whilst securing an additional $350,000 in loans payable in 3 months. • Some issues faced by Hampton as it seeks the new loan and renews the current loan o Monthly interest rate of 1½ % on the Principal and additional $350,000 (if secured) and ability to repay loan with these interest payment commitments o Old machinery requiring upgrade to effectively meet capacity production. o Limited free cash flow to enable Hampton to fulfill business relevant activities, vital to the company’s success. • In relating and identifying symptoms and problems in this case, a key point noted from studying the case is that Hampton’s lack of idle cash to service its soon due loan payments is a true problem whilst its current inventory procurement practices as well as collection and revenue recognition practices may be symptoms of a similar problem reoccurring in the future, even if this loan is granted. Analysis of the Case • Assumption: Hampton is a resilient machine tool manufacturer which owns majority of the market share in its industry compared to competitors, currently operates in a recovering to thriving economy and also enjoys the business of pretty stable, trustworthy clients who are mainly in the automobile and defense industry in the St. Louis area. Judging my financial statement numbers, Hampton sales numbers look to be at healthy ranges as well. Company currently has limited...
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...Hampton Machine Tool Company (HMTC) is a machine tool manufacturing business whichstarted in 1915 and has been a stable company since its establishment. The company’srevenues rely heavily on military aircraft and automobile manufacturers within the St. Louisvicinity.During 1960’s until end of 1970’s, HMTC experienced highs and lows which were mainly due toincreases and decreases in production. This is influenced by the Vietnam war, economicconditions, expansion of export market and demise of competitors. Though adversecircumstances happened, HMTC has successfully survived these problems. This can beattributed to the company’s conservative financial policies.In December 1978, Benjamin Cowins, President of HMTC, requested a 1M USD loan to St.Louis National Bank to purchase stocks of several dissident shareholders. The interest rate for the loan was 1.5% to be paid monthly and the principal of the loan is to be paid on September 1979. Mr. Jerry Eckwood, Vice President of St. Louis National Bank allowed the loan requestbecause of three reasons: 1) HMTC’s submission of projected sales and forecasted financialstatements; 2) HMTC’s credibility as depositor in St. Louis Bank and 3) Mr. Cowins’ credibility inthe business community. However, in September 1979, Mr. Eckwood received a letter fromHMTC requesting to extend repayment of the loan to December 1979 and a further loan requestof 350,000USD for equipment purchases. Point of View and Problem Definition The point of view to be taken...
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...Taylorism: - Definition 2. Overview -General approach -Contributions -Elements 3. Applications -McDonalds -Toyota 4. Conclusion 5. Reference INTRODUCTION: TAYLORISM: Definition: Production efficiency and methodology that breaks every action job or task into small and simple segments which can be easily analyzed and taught. Taylorism, * Aims to achieve maximum job fragmentation to minimize skill requirements and job learning time, * separates execution of work from work-planning, * separates direct labor from indirect labor * replaces rule of thumb productivity estimates with precise measurements, * introduces time and motion study for optimum job performance, cost accounting, tool and work station design, and * makes possible payment-by-result method of wage determination Named after the US industrial engineer Frederick Winslow Taylor (1856-1915), Taylor believed that the industrial management of his day was amateurish, that management could be formulated as an academic discipline, and that the best results would come from the partnership between a trained and qualified management and a cooperative and innovative workforce. Each side needed the other, and there was no need for trade unions. His approach is also often referred to, as Taylor's Principles, or frequently disparagingly, as Taylorism. Taylor's scientific management consisted of four principles: * Replace rule-of-thumb work methods with methods...
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...MarketLine Industry Profile Hotels & Motels in the United States October 2012 Reference Code: 0072-0520 Publication Date: October 2012 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED United States - Hotels & Motels © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0072 - 0520 - 2011 Page | 1 EXECUTIVE SUMMARY Market value The United States hotels & motels industry grew by 7.7% in 2011 to reach a value of $137.5 billion. Market value forecast In 2016, the United States hotels & motels industry is forecast to have a value of $179.5 billion, an increase of 30.6% since 2011. Market volume The United States hotels & motels industry grew by 2.4% in 2011 to reach a volume of 52,214 hotels & motels. Market volume forecast In 2016, the United States hotels & motels industry is forecast to have a volume of 56,484 hotels & motels, an increase of 8.2% since 2011. Category segmentation Leisure is the largest segment of the hotels & motels industry in the United States, accounting for 71.1% of the industry's total value. Geography segmentation The United States accounts for 27% of the global hotels & motels industry value. Market rivalry The hotels and motels industry is dominated by large international players, who compete intensely for a share of the market. United States - Hotels & Motels © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ...
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...Home Depot Canada operates 180 stores in convenient locations across Canada. Home depot has gone global by operating in Mexico, China, USA and Canada. The Home Depot carries do-it-yourself, as well as home improvement, construction and building maintenance products. Home Depot came up with many new services such as Installation service and Pro & Tool Rental service. Home Depot offers installation service to complete home renovation service by their contractors for a wide range of products. Home Depot offers repair and remodel tool to their customers. These services include a contractor loyalty program (Contractor Plus) and an on-site tool rental department (Home Depot, 2015). The project objective is to establish a good marketing plan for the whole organization which includes internal and external analysis. COUNTRIES The Home Depot operates in the USA, Canada, Mexico, China, United Kingdom and South America. The company has it’s headquarter at the Georgia, in Greater Atlanta. Home Depot Canada is the Canadian unit of the Home Depot and one of Canada's top home improvement retailers. The Canadian operation consists of 180 stores and employs over 35,000 people in Canada. Home Depot Canada has stores in all ten Canadian provinces and serves territorial Nunavut, Northwest Territories, and Yukon through electronic means (Online sales). SWOT...
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...Course Project Prepared by: Omar Elane mrelane@sbcglobal.net Keller Graduate School of Management Professor: Donna Darr 6/9/12 Table of Contents Introduction………………………………………………………………….3 Problem Statement………………………………………………………….4 Literature Review……………………………………………………………5 Analysis……………………………………………………………………….9 Proposed Solutions……………………………………….………………..11 Reflection…………………………………………………………………….13 References……………………………………………………………………15 Introduction The retail industry is pretty stabilized in today’s economy. The ability to have a competitive advantage is the key to survival. The grocery business has a history low job satisfaction and high performance which are costly to the organizations bottom line. This paper will document the issues that are affecting the organizational culture at the Ultra Foods in Forest Park, IL. Ultra Foods is the organization that will be closely analyzed for this course project. It is a privately owned, regional, super warehouse food retailer whose company headquarters is located in Highland, Indiana. It competes in the Supermarkets and Other Grocery (except Convenience) Stores under the NAICS number 445110(IBIS). The chain of stores is subsidiaries of the parent company Central Grocers. The chain has been undergoing constant growth and expanding in the states of Illinois and Indiana. The grocery chain reached a milestone in 2011 when they reached $1 billion dollars in sales. I recently worked at one of our many store locations as a Front End...
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...2343-6662 VOL. I, No.1, pp 1-8,October, 2013 AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE (ADRRI) JOURNAL ADRRI JOURNAL (www.adrri.org) ISSN: 2343-6662 VOL. I, No.1, pp 1-8,October, 2013 Effects of Information and Communication Technology (ICT) on Social Science Research Han Ping FUNG1,* 1 Technology Consulting, Hewlett-Packard, Kuala Lumpur, Malaysia *Han Ping FUNG (Email: corresponding han-ping.fung@hp.com) Abstract As more and more ICT tools being developed and used in social science research, it is a good idea to reflect how ICT had effects on social science research as a whole as there is a lacking of such study. This study is underpinned on and concurred with DeLone & McLean’s (1992, 2003) Information Systems (IS) Success Model in which ICT had effects on productivity of social science researchers. This study is based on participative observation approach in which ICT had effects on social science research in the following three ICT application areas: a) Pre-data analysis, b) Data analysis, and c) Post-data analysis. These three ICT application areas had improved a researcher’s productivity in terms of speed, quantity, quality, complexity as well as cost perspective is also discussed. Some concerns of using ICT are also included in this paper which encompasses: a) High learning curve, b) Revised expectation on researcher, c) Research by the convenient of big data, and d) Decrease of social skills of researcher. Limitation, recommendation for future works and conclusion...
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...Case Studies Solutions Case Studies Solutions,Article Writing,Assignments,Research Work,Home Work MenuSkip to content Home How We Work ? Refund Policy How to Order ? Disclaimer Contact Us Finance Cases List POSTED ON MARCH 8, 2013 Hello, If u want us to solve any case study from below list, do contact us anytime, We are here to provide the experience, expertise, and professionalism that you are looking for , Our tutors are available 24/7 to assist you what you need, Click Here to submit your Order. ======================================================================================= Acquisition of Consolidated Rail Corp. by Benjamin C. Esty Airbus A3XX: Developing the World’s Largest Commercial Jet by Benjamin C. Esty American Chemical Corp.by William E. Fruhan, John P. Goldsberry American Home Products Corp.by David W. Mullins AQR’s Momentum Funds by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc. by Mark L. Mitchell Dell’s Working Capital...
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...quality function deployment project. 6. Construct a statistical process control chart for service operation. 7. Use a fishbone chart in a cause-and-effect analysis. 8. Compare and contrast the quality program features espoused by Philip Crosby and W. Edward Deming. 9. Describe the features of an unconditional service guarantee and its managerial benefits.10. Discuss the concept of a service recovery.Service "with a smile" used to be enough to satisfy most customers. Today, however, some service firms differentiate themselves in the marketplace by offering a "service guarantee." Unlike a product warranty, which promises to repair or replace the faulty item, service guarantees typically offer the dis satisfied customer a refund, discount, or free service. Take, for example, the First Interstate Bank of California. After interviewing its customers, the bank management discovered that they were annoyed by a number of recurring problems, such as inaccurate statements and broken automatic teller machines (ATMs). Account retention improved after the bank began to pay customers $5 for reporting each such service failure. What is surprising, however, is that the service guarantee also had a motivating effect on the employees. When an ATM failed at a branch, the employees, out of pride, decided to keep the branch open until the machine was repaired at 8:30 pm.Another hidden benefit of a guarantee is...
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