...Unit Seven – The Lennar Company Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Edna McEwen Professor: Dr. Strouble Date: June 29, 2015 LENNAR CORPORATION’S JOINT VENTURE INVESTMENTS Company Name: The Lennar Company Topic of the Week: Create a case study analysis focusing on the company’s abuse and fraudulent activities relative to CSR and business ethics. Synopsis of the Situation The Lennar Company faces the damage caused by the Fraud Discovery Institute’s claims, the financial crisis, mortgage defaults, and dramatic fall in house prices, particularly in some of their active markets. The country is in the midst of an economic recession that began in 2007, and on top of that, the company has been accused of operating a ponzi scheme and profiting while allowing investors to lose money. On the day of the announcement by the Fraud Discovery Institute, the company’s stock price took a dramatic fall. The problem is, the person that founded the Fraud Discovery Institute is a ‘reformed’ crook who has made it his mission to expose fraudulent behavior of others as a way of redeeming himself from some of the negative things he has done. The question is, is he really reformed, or is this just another scheme he has plotted to gain access to company’s information so he can pounce when the company is most vulnerable. Alternative Solutions Since Lennar’s mission statement states...
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...Question 1: In the case study Blu-ray versus HD-DVD: A standards battle in high-definition video (Schilling, 2013,pp 65-66), what factors do you think influenced whether (1) consumers, (2) retailers, and (3) movie producers supported Blu-ray versus HD-DVD? Discuss and justify your answer using the theory behind the selection of dominant designs. Intro; In the early 2000’s Toshiba and Sony, two tech giants went head to head to provide homes with the next generation of high definition video. Toshiba’s new technology was called HD-DVD and was compatible with the old technology, DVD. Sony released Blu-Ray which required a new playing system altogether. After both companies had secured major contracts in the entertainment industry there was one moment that helped Sony to become the dominant product. Time Warner, formerly in alliance with Toshiba, switched to Sony prompting other undecided companies, including Walmart and Netflix, to follow suite. After this the tech war was effectively over and Toshiba ceased production of HD-DVD’s and components. Although at the same time an alternative product for watching movies was growing; online streaming. This provided a similar experience, depending on how fast the internet was in the area, but at a cheaper cost of being digital media. Consumers; in the fight for supremacy the early adopters of the technology are very influential because they will be more likely to have researched about which product was better based on technical factors...
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...50011-1070 http://www.econ.iastate.edu/tesfatsi/ Last Revised: 3 April 2011 The Enron Scandal and Moral Hazard • Enron, the 7th largest U.S. company in 2001, filed for bankruptcy in December 2001. • Enron investors and retirees were left with worthless stock. • Enron was charged with securities fraud (fraudulent manipulation of publicly reported financial results, lying to SEC,…) • QUESTION: In what ways are security market moral hazard problems at the heart of the Enron bankruptcy scandal? Brief Time-Line of the Enron Scandal • Enron was a Houston-based natural gas pipeline company formed by merger in 1985. • By early 2001, Enron had morphed into the 7th largest U.S. company, and the largest U.S. buyer/seller of natural gas and electricity. • Enron was heavily involved in energy brokering, electronic energy trading, global commodity and options trading, etc. Brief Time-Line of the Enron Scandal…Continued • On October 16, 2001, in the first major public sign of trouble, Enron announces a huge third-quarter loss of $618 million. • On October 22, 2001, the Securities and Exchange Commission (SEC) begins an inquiry into Enron’s accounting practices. • On December 2, 2001, Enron files for bankruptcy. : Oct – Dec 2001 Regulatory Oversight of Enron Auditors Arthur Anderson Audit Committee (Directors) SEC Company Report Shareholders Enron Board of Directors Enron Investigative Findings 1993-2001: Enron used complex dubious energy trading schemes ...
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...to expect and can make it easier to secure loans and attract investors | Culture between Disney & Pixar | Acquisition of existing customer, contacts, goodwill, suppliers, staff, plant, equipment and stock | Financial stock Dilution | The market for the product (animated movies) is already established | | Existing employees and managers will have experience they can share | | Skipping the start-up stage | | Inheriting systems, customers and image | | Disney consolidate its dominant position in the market | | Pixar improve the capacity of profitability and then create more value | | Revitalize Disney’s animation department, eliminate competition, access to technology & human capital | | | | 1. Buy When assessing if Disney should buy Pixar is necessary to evaluate the pros and cons of the action. Considering the cons, firstly is necessary to understand that there are some external factors such as, increasing competition or the decline of the industry that can affect future growth and therefore the profitability of the market. It’s necessary also to evaluate the current relationship that exists between the two companies, because this may be a major factor for the success of the business. We also verify that the culture of the two companies is quite different and this can also be a negative factor for the acquisition. Pixar culture is...
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...econ.iastate.edu/tesfatsi/ Last Revised: 3 April 2011 The Enron Scandal and Moral Hazard • Enron, the 7th largest U.S. company in 2001, filed for bankruptcy in December 2001. • Enron investors and retirees were left with worthless stock. • Enron was charged with securities fraud (fraudulent manipulation of publicly reported financial results, lying to SEC,…) • QUESTION: In what ways are security security market moral hazard problems at the heart of the Enron bankruptcy scandal? Brief Time-Line of the Enron Scandal • Enron was a Houston-based natural gas pipeline company formed by merger in 1985. • By early 2001, Enron had morphed into the 7th largest U.S. company, and the largest U.S. buyer/seller of natural gas and electricity. • Enron was heavily involved in energy brokering, electronic energy trading, global commodity and options trading, etc. Brief Time-Line of the Enron Scandal…Continued • On October 16, 2001, in the first major public sign of trouble, Enron announces a huge third-quarter loss of $618 million. • On October 22, 2001, the Securities and Exchange Commission (SEC) begins an inquiry into Enron’s accounting practices. • On December 2, 2001, Enron files for bankruptcy. : Oct – Dec 2001 Regulatory Oversight of Enron SEC Auditors Arthur Anderson Audit Committee (Directors) Company Report Shareholders Enron Board of Directors Enron Investigative Findings 1993-2001: Enron used complex dubious ...
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...A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares. In European law, the term 'joint-venture' (or joint undertaking) is an elusive legal concept, better defined under the rules of company law. In France, the term 'joint venture' is variously translated as 'association d'entreprises', 'entreprise conjointe', 'coentreprise' and 'entreprise commune'. But generally, the term societe anonyme loosely covers all foreign collaborations. In Germany,'joint venture' is better represented as a 'combination of companies' (Konzern)[1] On the other hand, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-venturers". The venture can be for one specific project only - when the JV is referred to more correctly as a consortium (as the building of the Channel Tunnel) - or a continuing business relationship. The consortium JV (also known as a cooperative agreement) is formed where one party seeks technological expertise or technical service arrangements, franchise and brand use agreements, management contracts, rental agreements...
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...Joint venture From Wikipedia, the free encyclopedia For other uses, see Joint Venture (disambiguation). This article is written like a personal reflection or opinion essay rather than an encyclopedic description of the subject. Please help improve it by rewriting it in an encyclopedic style. (April 2010) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2010) A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares. In European law, the term 'joint-venture' (or joint undertaking) is an elusive legal concept, better defined under the rules of company law. In France, the term 'joint venture' is variously translated as 'association d'entreprises', 'entreprise conjointe', 'coentreprise' or 'entreprise commune'. But generally, the term societe anonyme loosely covers all foreign collaborations. In Germany, 'joint venture' is better represented as a 'combination of companies' (Konzern).[1] With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a...
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...Case 3.0 ALTERNATIVE STRATEGIES 1. Reanalyse the business plan, marketing plan, product strategy and other elements that are related to the company’s performance. 2. Plan for the future together with the management team in establishing the company’s mission and values in achieving the company’s vision. 3. Raise the company’s reputation. 4. Joint venture with the other potential company 5. Radha and the employees should actively involve in the social activities to keep the public aware about the company. 6. Plot an in-dept competitor analysis, regularly analyse on their company’s SWOT to know their own strengths, weakness, opportunities and threats in order for them to compete by using their own strengths and always grab the opportunities in the right time. 4.0 EVALUATION OF ALTERNATIVE STRATEGIES. 1. The company should reanalyse their business plan, product strategy, marketing plan and etc. in looking for the best way for the company to develop and sustain with the current and future economic situation. They may opt to engage any external experts’ advice in looking into their business plan, marketing strategy and so forth. If they want to look for different market other than government the company has to create or generate product which can be used for a bigger market in term of product usage, delivery method, and should have a readily available stock. 2. Plan for the future together with the management team in establishing the company’s...
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...Eli Lilly in India Case Study BUS 545 – Global Business Management May 31, 2015 Andrew Juarez Professor Barnett Executive Summary This report provides an analysis and evaluation of the case study “Eli Lilly in India”. The general overview of the case study is the discussion of the Joint Venture agreements between two parties. Eli Lilly a reputable pharmaceutical company entered the Indian market in a joint venture agreement with Ranbaxy. The joint venture between both parties was initially a positive move, they both had an increased market share, and were driving earnings, and the relationship between both companies was positive without negative circumstances. Thus, the issue problem arose when the partnership was at an impasse, both of the companies had different perspectives on the future of the joint venture, while Ranbaxy Laboratories Limited felt that generics would be most suitable for the future development of the company, Eli Lilly and Company were focused on growth and innovation. They had both made their mark within the growing Indian economy, though other firms began to flood the market. The decision had to be made whether Eli Lilly would continue to use Ranbaxy as an intermediate or would it be better for them to rethink the joint venture as they were seeking something that Ranbaxy wasn’t, stable growth in the global business environment. The company background, the current situation and any competitive issues. Eli Lilly & company works to discover...
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...participants are given higher marks whereas inactive participants might get lower marks. Free riders receive zero mark. Assessment: 10% for discussion (presentation, Q & A); 5% for the write-up (3 pages long only and to hand in directly to your tutor in week 9) Topics and guidelines for the seminars #1. How do Vietnamese stock exchanges operate? You should address at least the following issues: • • • • Compare HOSE and HNX How many types of orders are being executed in Vietnam? Trading process (how to buy and sell shares for example) Trading methods (for example: continuous matching method) and/or techniques such as margin trading, short-selling, repo if applicable Suggested issues: • • • • • • • • • Trading venue (floor-based or screen-based) Listing rules Ownership of the exchanges Price limit, trading halt Types of order, execution process Precedence rules Tick size, any procedure for block trades Methods of trading (quote driven or order-driven) Opening call/Closing call #2. General information of OTC market in Vietnam. Students are required to provide audiences with brief information about OTC market in Vietnam and make comparison with the two stock exchanges (HOSE and HNX). Suggested issues: • • • • • What is OTC market? Differences between OTC market and an exchange? SanOTC vs. Upcom Participants on OTC market Securities and financial instruments traded? Types of market (auction, dealer, direct...
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...In this case study, we examine Merrill Lynch, a U.S. based financial service institution that is the third largest mergers and acquisitions adviser behind Morgan Stanley and Goldman Sachs. The company serves clients in more than 150 countries worldwide. In this particular case study, we observe Merrill Lynch and its struggle to dominate the Japanese market. Being the first foreign firm to enter Japan’s private client investment market, Merrill Lynch was met with limited success. The company was met with many challenges trying to reside in Japan. A legal and cultural challenge that the company was faced with was Japan’s inability to regulate its economy. Therefore, Japan’s government made it difficult for the company to offer the wide variety of services offered in the United States and even more difficult were four competing stock brokerages that monopolized the Japanese market. These stock brokerages made it difficult for Merrill Lynch to appeal employee talent and customers away from them. Foreign exchange regulations also made it difficult to sell non-Japanese stocks, bonds, and mutual funds to investors. Ethically, Merrill Lynch was challenged to go against the Japanese government in fear of damaging future chances of conquering, or even reentering, the market. Ultimately, Merrill Lynch pulled out of the private client market in Japan and closed its six retail branches. Japan’s government also played a role in Merrill Lynch’s failure in the private client market because...
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...Case Study : China Doll INTEGRATED CASE STUDY REPORT ON CASE STUDY NO 4: CHINA DOLLS Question 1 Based on the financial information given in Appendix A, what is HCF’s current financial position, how it is performing, perform ratio analysis to assess its current financial position and financial performance. (a) HCF’S Current Financial Position. (b) How HCF is performing. * Falling margins and profits * Revenue decreased by 7.7% (RM10mil) but COGS increased by 6.5% (RM4740mil) in 2008 * Operating profit decreased by 67% (RM9240mil) in 2008 * Increase in current liabilities * Trade payables increased by 92% (RM6654mil) * Overdraft increased by 86% (RM1415mil) PROFITABILITY | FORMULA | YEAR 2008 | YEAR 2007 | Return on Capital Employed (ROCE) | EBITNET ASSETS ×100 | 330054841 ×100=6% | 1259049437 ×100=25.47% | Profit Margin | EBITNET NET SALES×100 | 3300120000 ×100=2.75% | 12590130,000 ×100=9.68% | Return on Assets | NET PROFITTOTAL ASSETS×100 | 244272661 ×100=3.36% | 919161729 ×100=14.89% | Gross Profit Margin | GROSS PROFIT SALES×100 | 42750120000 ×100=35.63% | 57490130000 ×100=10.65% | Operating Profit Margin | OPERATING PROFIT SALES×100 | 4600 120000×100=3.83% | 13840 130000×100=10.65% | * Resulting in overall increase of current liabilities by 45% (RM5528mil) RATIO: PROFITABILITY, LIABILITY, ACTIVITY & LEVERAGE. RATIO: PROFITABILITY, LIABILITY, ACTIVITY & LEVERAGE. PROFITABILITY * ROCE To measure of the return that a business in achieving from...
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...Case Study Report Case 3-45 The requirement of independence, both independence in appearance and independence of mind, is presented by the rules of the AICPA code of professional conduct. Every practitioner in public accounting profession is required to keep their independence and objectives; however, independence area is so complex that not all specific situation can be answered by AICPA. Instead, in most situations, the public accounting firm and auditors should make their own decisions by professional judgments to avoid possible threatens to independence. This is a case study report of Case 3-45, which is the best case to get a better understanding of these difficult situations that relate to auditors' independence. This report is presented in three parts: case introduction, case 1 analysis, case 2 analysis, conclusion and further study. In case introduction part, the firm and case overview is briefly introduced. In following two parts, case 1 analysis and case 2 analysis, include the detailed case overview, analysis according to AICPA rules and references, and opinions over each case. In the final conclusion and further study, the report reaches to the conclusion of Case 3-45 and develops the further study suggestions. Case Introduction In Case 3-45, the main office of a public accounting firm, charged by partners, has met two difficult situations that may impair the firm’s independence. Don Moore and Mary Reed are two professional staff, who, respectively, are involved...
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...International Management From Matrix to Customer- Centric Management at ABB As a global leader in power and automation technologies,ABB serves utility and industry customers across the world. It has 117,000 employees in about 100 countries and generated $31.8 billion in revenue in 2009. It possesses a strong presence in emerging markets,particularly in Asia. ABB was formed as a result of a 1988 merger between two former competitors, the Swedish ASEA AB and the Swiss BBC Brown Boveri Ltd. The Swedish company added its management strength and the Swiss company added its technological and marketing expertise.The new CEO declared that ABB would be “global and local, big and small, radically decentralized but with central control.” To achieve these seemingly competing objectives, ABB’s CEO chose to implement matrix management. Matrix Management Matrix management is an organizational structure that combines two levels of oversight and control. In ABB’s case in 1993, the company was divided into four corporate divisions (Global dimensions) at the same time as it was divided into three geographic regions (Regional dimensions).The Global dimensions were further partitioned into business areas and the Regional dimensions were partitioned into country holdings. See the nearby figure from Germany’s INFO Institut.Thus, employees reported to two superiors, one from their Global Dimension and one from the Regional dimension. Global dimensions were responsible for strategy, distribution...
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...Microsoft/Intuit Case Study Team 7 Garric Zhang Ling Liao Eric Wang 1. What factors have contributed to Microsoft’s large cash hoard? | 1985 | 1986 | 1987 | 1988 | 1989 | Cash and Marketable Securities | 18.9 | 102.7 | 132.5 | 183.2 | 300.8 | Stockholders' Equity | 54.5 | 139.3 | 239.1 | 375.5 | 561.7 | Net Profit | 24.1 | 39.3 | 71.8 | 123.9 | 170.5 | ROE | 44.22% | 28.21% | 30.03% | 33.00% | 30.35% | New Cash and Marketable Securities | 2.8 | 4.1 | 9.3 | 18.6 | 25.2 | New Stockholders' Equity | 38.4 | 40.7 | 115.9 | 210.9 | 286.1 | New Net Profit | 23.5 | 37.4 | 67.5 | 118 | 157.7 | ROE (after adjusted) | 61.20% | 91.89% | 58.24% | 55.95% | 55.12% | Increased ratio | 38.39% | 225.71% | 93.94% | 69.57% | 81.59% | | 1990 | 1991 | 1992 | 1993 | 1994 | Cash and Marketable Securities | 449 | 686 | 1345 | 2290 | 3614 | Stockholders' Equity | 919 | 1351 | 2193 | 3242 | 4450 | Net Profit | 279 | 463 | 708 | 953 | 1146 | ROE | 30.36% | 34.27% | 32.28% | 29.40% | 25.75% | New Cash and Marketable Securities | 39 | 57 | 78 | 91 | 105 | New Stockholders' Equity | 509 | 722 | 926 | 1043 | 941 | New Net Profit | 256 | 434 | 669 | 897 | 1077 | ROE (after adjusted) | 50.29% | 60.11% | 72.25% | 86.00% | 114.45% | Increased ratio | 65.67% | 75.40% | 123.78% | 192.57% | 344.43% | From the case, we can know that Microsoft outsold its nearest competitor several time to be the most profitable large public corporation in the world, and...
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