...JetBlue IPO – Case Study IPO Process An initial public offering (IPO) is selling traded equity to the public on a securities exchange for the first time. The initial public offerings are used by companied to raise additional capital, and to transform from a private company into a public company. The IPO process is as follows. 1. Selecting an underwriter 2. Due diligence 3. Preliminary registration 4. SEC review 5. Road show and book building 6. The offering settlement There are many advantages and disadvantages of going public through an IPO. Advantages Increased capital from public offering * Increased liquidity * Public market creates shareholders’ value * Facilitates merger & acquisition – shares can be used instead of cash * Accelerates company’s growth * Increased recognition * Employee stock options are valuable Disadvantages * Costs and time demands – costs associated with reporting could be significant and more time needed for statements preparations. * Information disclosure – information may be visible to competitors. * Financial reporting and administration burdens of complying with SEC * Control – managements may experience loss of control. * Increased risk of shareholder litigation * Increased restrictions The issue of JetBlue The issue is that there is a debate among the JetBlue management about the appropriate pricing of the IPO. The analysts reported that demand exceeded supply...
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...Memo To: Senior Management From: Brian Hankes (Lead Writer), Andrew Krump, Matt Gapp, John Mathiowetz Re: Optimal Capital Structure Overview ______________________________________________________________________________ As result of the analyst meeting, the finance team and I evaluated whether or not we could increase shareholder value by changing the capital structure of Hill Country Snack Foods (HCSF). We analyzed four different scenarios: ● Maintain our current Debt-to-Capital position of 0% ● Expand our Debt-to-Capital to 20% ● Expand Debt-to-Capital even further, to 40% ● Significantly grow financial leverage, expanding Debt-to-Capital to 60% After reviewing these scenarios, we recommend HCSF amend the current Debt-to-Capital ratio...
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...structure of Hill Country Snack Foods Co. EXECUTIVE SUMMARY This report discusses the current operational and financial strategies of Hill Country Snack Foods Co. and analyses the proposed capital structure for it. Part I of the report reviews the company’s strategies and its latest financial performance. Part II illustrates a detailed valuation of the proposed capital structure. Valuation methods involved includes Dividend Discount Model and Discount Cash Flow valuation (the Hamada approach). It is recommended that the company adopt a 40% debt-to-capital structure to fully use its capital and benefit from the external funding. PART I THE OVERVIEW OF HILL COUNTRY SNACK FOODS CO. Background of Hill Country Snack Foods Co. Hill Country Snack Foods Co. is a middle-size snack food company located in Austin, Texas in the U.S.. The snack food industry is very competitive. The main competitors of Hill Country are industry giant PepsiCo and smaller companies like Synder’s-Lance. The current CEO Howard Keener, who is 62 years old and worked in the company for over 15 years, is approaching retirement. He has a very strong personal influence on the company culture and the way it is operated. He is passionate about maximizing shareholder value, believes in keeping tight control over costs, and is very risk adverse in the operation strategy as well as the financing decisions. Considering his near retirement, many investors think there will be a series of change in Hill Country. Operating...
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...QUESTIONS FOR THE ‘HILL COUNTY SNACK CO’ CASE STUDY (TO BE ANSWERED IN THE STUDENT GROUP REPORTS) In your group report, you should attempt to answer the following questions. For each question, a few paragraphs or sentences should be enough; I should stress that I am more interested in understanding the quantitative analysis or reasoning that led you to your answer in the report, than in the numerical accuracy of the answer (not that the latter is not important at all!). It is recommended that you upload to moodle any files that might facilitate me in understanding your answers (e.g. excel worksheets with computations of intermediate steps, etc.) Questions 1. How much business risk does Hill County face? How much financial risk would the company face at each of the three alternative debt-to-capital ratios presented in Exhibit 4? How much value could Hill County create for its shareholders at each of the three alternative debt levels? 2. What debt-to-capital structure would you recommend as optimal for Hill County? What are the advantages of adding debt to the capital structure? How would issuing debt impact the company’s taxes and expected costs of financial distress? How would the financial markets react if the company increased its financial leverage? 3. How could Hill County implement a more aggressive capital structure? What methods could be used to increase debt and decrease equity? 4. Considering Hill County’s corporate culture, what arguments could you use to persuade CEO...
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...American Rangelands and Forests Jacolbi Williams October 28, 2012 SCI 275 Page 1 | Rangeland or Forest Location | Brief History of Rangeland or Forest | What are current land management problems? | What are the current federal land management strategies that address these problems? | What is one sustainable effort that should be implemented? | American Rangeland or Forest: Edwards Plateau | TEXAS | Edward’s Plateau is located in South Central Texas . This plateau is mainly a grassland covered with trees, soil more suitable for farming needs and rivers running through the south and east portion of the land ("Texas State Historical Asociation", n.d). | The rapid growth of the urban areas and endangerment of species around Edward’s Plateau. The increase of growth brings more issues in different types of developments which in turn damages the value of the land. | Texas has the Southern Edwards Plateau Habitat Conservation Plan (SEP-HCP) in place to address the problems of Edwards Plateau. | Emphasize and give notice of violations against the SEP-HCP | Part 1 Page 2 The Rangeland in Texas by the name of Edwards Plateau is at risk. The human activities have begun to limit land and endanger the different species residing on that land. Without a set sustainability plan in action, Edwards Plateau as will know it will become a thing of the past. Part 2 Action Items (in order) | Action Steps | Timeline | List sources for Edwards Plateau | Write down information...
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...Lakota Hills Case Trevor Rhodes Entrepreneurship & Intrapreneurship April 13, 2015 Professor Murray Lakota Hills Case This essay is in regard to the “Lakota Hill Case,” a story about an entrepreneurial woman named Laura Ryan and her family’s effort at making a profitable business venture out of her home-made Indian fry bread. This essay will identify advantages and possible challenges of developing a specialty food business. It will consider whether or not Lakota Hill’s strategy is the best way to build a specialty food business. It will also examine other channels that could be integrated into the overall selling model and describe how Lakota Hills will make money. Lastly, this essay will consider whether Lakota Hills would be a business worth investing. There are many advantages of developing a specialty food business and they begin with the advantages of developing one’s own business, such as: being your own boss, creating your own work environment, doing something in which you believe, reaping the benefits of hard work and long hours directly, variety, challenges, and opportunities for creativity, full use of knowledge, empowerment, and hopefully, the satisfaction of a successful venture. As said before, these advantages are similar across any startup business. Specifically, running a specialty food business has the main advantage of being unique. The creator of this business has the potential advantage of paving the way for this type of food and there is a...
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...Cuisine……….2 Sports………………………..3-4 Entertainment…………...5-6 Exotic Sites…………………7 Enjoyments of the Philippians Philippine Cuisine “To the Filipinos, food is important, as it is an integral part of local art and culture as well as communal existence” (*1). First and foremost, just like any other country in Asia, seafood is the most popular type of dish, and is most always served with rice. Filipino Chefs rely on the “freshness” of the fish, along with special sauces and spices to enhance the taste. Fish Sarciado (*3) Inahaw na Bangus (*4) Rellenong Alimasag (*5) Popular seafood dishes: (*3)( *4) (*5) * Fish Sarciado (Fried Fish Steaks) * Inahaw na Bangus (Stuffed Grilled Milkfish) * Rellenong Alimasag (Stuffed Crabs) For those who dislike seafood, the Philippines are also especially well known for their delicious roasted pigs. (Roasted Pigs in Philippines (*6)) Need something quick? The Philippines are home to one of the largest fast food chains in the world, Jollibee. Picture of a Jollibee fast food chain in Santa Maria (*7)) Sports Boxing The number one watched sport in the Phillippines is boxing. This is largely in part due to the success...
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...Event Management Trends in Asia Chapter 1 © 2010 by McGraw-Hill Education (Asia) Chinese calligrapher at work What arts and crafts at your destination will appeal to international visitors within an event setting? Why have you chosen these? © 2010 by McGraw-Hill Education (Asia) Chapter objectives Explain what events and event management means Categorise the difference types of events in Asia Understand events as an integral part of Asia’s tourism industry Appreciate the problems and challenges facing Asian countries becoming event destinations Understand trends and concepts such as Integrated Resort developments, electronic connectivity and the importance of going green in event management © 2010 by McGraw-Hill Education (Asia) Event typology Recreational MICE Arts Event Type Special Private Sports Political © 2010 by McGraw-Hill Education (Asia) Cultural Sports Events Popular in Asia such as Beijing Olympics and FIFA World Cup in Japan and Korea Competition between teams – on land, water or air Amateur or professional participation High involvement of ‘event stakeholders’ such as participants, audience, media, government and sponsors © 2010 by McGraw-Hill Education (Asia) Cultural Events Based mainly on religion, culture and local traditions Can be held at various venues such as local temples and churches, town squares, grasslands or heritage sites Those attending...
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...Graze goes German: The Internationalisation Strategy of Nature Delivered Ltd. Table of Contents Section 1: Country Profile 3 Introduction 3 History 3 Geographical overview 3 Macroeconomic overview 4 Political overview 4 Legal environment 5 Foreign Direct Investment 5 Financing and incentives 5 Taxation 5 Labour 6 Infrastructure 6 Food Industry 6 Market trends 7 i) Health awareness 7 ii) R&D 7 iii) Obesity 7 iv) Environmental awareness 7 v) The ageing population 8 The E-Commerce Industry 8 Consumer culture 9 Section 2: International Expansion Plan 10 Graze Company History 10 The Product 10 The Business 10 Location 10 Reasons for expansion 11 Timing of Entry 11 Modes of Entry 12 FDI Entry Mode 13 Place 14 Organisational strategy 14 Competition 15 Organizational architecture 16 Control systems and incentives 18 Target market 18 Response to competitive threats 19 Conclusion 20 Bibliography 21 Section 1: Country Profile Introduction Successful businesses know when and how to adapt and change. In the increasingly competitive and rapidly changing business environment of today, expanding a company internationally provides opportunities not only for revenue growth, but also the exchange of knowledge and the enhancement of capabilities, thereby strengthening the long-term competitiveness of a firm. However, the decision to embark on an international expansion can be both an exciting yet frightening...
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...2009 in Atillisa, Iowa when the Equal Employment Opportunity Commission filed suit against Hill Country Farms Inc. for substandard wages, a violations of the American’s with Disabilities Act. More familiarly known as, “The Boys in the Bunkhouse,” Henry’s Turkey Service became the Equal Employment Commission’s largest settlement ever, at $241.3 million. In the 1960’s Kenneth Henry, who was an expert at turkey insemination, became a partner with T. H. Johnson, owner of Hill Country Farms, a privately owned and sponsored enterprise. Hill Country Farms raised dairy cattle, provided contract labor for turkey breeding and processing plants, and operated a country store and restaurant facility. This privately owned company, with the Texas Rehabilitation Commission’s approval, operated a for-profit program that took individuals with intellectual and developmental disabilities and trained them in agricultural work and basic life skills. This was at a time in society when it was acceptable and commonplace to put individuals with disabilities into institutions and often, most families were encouraged to do so. Hill Country Farms in Goldthwaite, Texas was home to 25 to 30 mentally disabled men from Texas’s state institutions for the handicapped. These men engaged in a variety of on-the-job training activities, which revolved around the raising of dairy cattle. In addition, Hill Country Farms contracted with out-of-state sites in Atalissa, Iowa, Newberry, South Carolina, Sedgwich...
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...Supply Chain Management: Food (Pineapples and Plantains) Chestnut Hill Farms Table of Contents I. Major manufacturers/producers or service providers for pineapples and plantains II. Total output worldwide regarding pineapples and plantains – divided by countries. III. The import export statistics to show major producers and major consumers for pineapples and plantains IV. Local manufacturer Chestnut Hill Farms: vendors/suppliers, distributors, wholesalers and retailers. V. Pineapple and plantain flowchart (vertical integration) VI. Discuss major problems and issues in the pineapple and plantain supply chain VII. Include, suggestions, if any, for making improvements regarding the pineapple and plantain supply chain I. Major manufacturers/producers or service providers for pineapples and plantains Today many countries have become pineapple producers, making the fruit production grow over 400% since 1960. Then again, a rise of 50% was seen after the introduction of what they call the “Gold” variety, developed in the 1990s by Fresh Del Monte. Pineapple consumption has double in last 10 years, making the industry grow into a more complex chain. Other major fruit product today is plantains, which production has grown over 60% in the last 30 years. Plantains have become a major part of food in Central and West Africa, and in other regions such as the Caribbean Islands, South, and Central America. As comsuption for both fruits have...
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...BRANNIGAN FOODS STRATEGIC MARKETING PLANNING CASE SOLUTION PDF Copyright © 2014. All Right Reserved BRANNIGAN FOODS STRATEGIC MARKETING PLANNING CASE SOLUTION PDF Download: BRANNIGAN FOODS STRATEGIC MARKETING PLANNING CASE SOLUTION PDF Are you trying to find Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF?. You will be happy to recognize that today Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF is offered on our on-line collection. With our on-line resources, you will certainly be able to locate Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF or practically any sort of sort of manual, for any kind of type of product. Best of all, they are completely complimentary to find, use as well as download and install, so there is no price or anxiety in any way. Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF may not make exciting reading, however Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF is stuffed with valuable guidelines, information and warnings. We have made it very easy for you to locate a user manual with no digging. And by having access to our manual online or by storing it on your computer system, you have hassle-free answers with Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF. To obtain begun locating Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF, you correct to locate our site which has a comprehensive collection of Ebooks...
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...The Great Italian Food Company (GIFC) is a family owned business. For the restaurant business to survive, it must give attention in providing high quality products and service, perform corporate social responsibility and integrity. The GIFC managers have understood that for the restaurant business to succeed, in the long run, must focus on integrity in relationships with customers, employees and business partners. The GIFC is an authentic Italian restaurant, so opening up other ethnic restaurants should not be done as other stakeholders may portray this step as loss in faith in their own food and restaurant and new venture into other ethnic foods could prove disastrous as they have no idea about other ethnic foods. If they have to choose a strategy they should choose a differentiation approach (Porters four competitive strategies). The differentiation strategy is to offer product or services that are of unique and superior value compared to those of competitors and to target a wider market segment. (Kinicki & Williams) With many other Italian restaurants in the greater St. Louis area and in the country, how can they differentiate themselves from the rest? Before expanding their business, first they have to do a SWOT analysis (Strength, weakness, opportunity and threat). This is important because careful scanning of an organization’s internal and external environments may detect early sign of opportunity and threat that may influence the firm’s long term plans. (Kinicki &...
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...Hill Country Snack Food Co is experiencing steady growth and success due to its effective operations and quality products in its industry. It has unique capital structure with zero debt and large cash balance corresponding to its conservative operation strategy and corporate culture and philosophy. Whether to change to a more aggressive capital strategy and what is the optimal level of debt-to-capital ratio for Hill Country is the key issue in this case. * Hill Country’s operation strategy and its corporate culture The company commits to operating and cost efficiency with high quality products and strong distribution management. This strategy enjoys a steady sales growth rate and positive profits. The management of Hill Country strongly believes to maximize shareholder value and the managerial philosophy is caution and risk-avoidance. * Influence on financial performance and capital structure Hill Country’s conservative operation drove strong financial performances with large increases in net income since 2009 and continuous and growing dividends paying out ratio and sufficient cash flow. The company’s risk-aversion culture also brings about a preference of equity finance, large cash balance and avoidance of debt. The ROE of Hill Country (12.5%) is much lower to Pepsi’s (30.8%) in correspondence to its net profit (7.2%) compared to Pepsi’s (9.7%). The reason is because of its 100% reliance on equity finance. * The impact of a more leveraged capital structure ...
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...add risk but are a part of the competitive environment and risk analysis (Pearce & Robinson Jr., 2009). This section presents the significant external forces and risks in the New Zealand subsidiary expansion. Legal and Regulatory Legal and regulatory environments influence businesses and FreshMade Cheese Farms is no different. The Foreign Corrupt Practices Act (FCPA) enacted in 1977 makes bribes of foreign officials, agents, employees, or other similar foreign representatives illegal (Cheeseman, 2010). Many foreign countries have standard practices of accepting bribes or using similar influences to do business in the country. U.S. businesses are not allowed to operate in this fashion under the FCPA (Cheeseman, 2010). One of the main New Zealand laws that FreshMade Cheese must consider is the Overseas Investment Act of 2005. This legislation outlines requirements and restrictions on New Zealand business in owning assets and operating within the country (newzealand.govt.nz, 2011). The emphasis of this act is to restrict and regulate the fishing industry. There is no significant affect for a cheese subsidiary business. Political New Zealand has a stable political atmosphere (Fund Investor, n.d.). The government operates under The...
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