...Mercury Athletic Footwear – Assessing the Opportunity Mercury Athletic Footwear Objective and Focus Comm 401 – Individual Assignment The focus of this exercise is to undertake a broad level assessment of the strategic fit of Mercury Athletic Footwear into the Active Gear Inc. portfolio. In addition, a preliminary valuation assessment needs to be made as to the value of this potential acquisition. In regards to this: 1. Is Mercury Athletic Footwear an appropriate target and strategic fit for AGI? Why or why not? 2. Are John Liedtke’s projections appropriate and acceptable for decision-making purposes? Do you have any concerns with the assumptions made or computations offered for analysis? If so, what are they? 3. What preliminary valuation estimate (can be stated as a range) would you place on the value of Mercury Athletic Footwear? Do you consider your estimate to be conservative or aggressive? 4. Where do you feel AGI can leverage synergies should they decide to acquire Mercury? Which of these, if any, would you expect AGI to position its acquisition rationale around in making its pitch for financing support? Can you illustrate a valuation of potential cost savings or revenue generation opportunities resulting from your synergy assessment? 5. Identify what you feel are the top five (5) decision criteria which would guide your thought process as to whether Mercury Athletic Footwear should be acquired. 6. Based on your analysis, do you recommend that Athletic Gear Inc. move...
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...2009 TIMOTHY A. LUEHRMAN JOEL L. HEILPRIN Mercury Athletic Footwear: Valuing the Opportunity In March 2007, John Liedtke, the head of business development for Active Gear, Inc., a privately held footwear company, was contemplating an acquisition opportunity. West Coast Fashions, Inc. (WCF), a large designer and marketer of men’s and women’s branded apparel had recently announced plans for a strategic reorganization. The plan called for a divestiture of certain non-core assets and a renewed focus on WCF’s higher-end business, business-casual, and formal-wear apparel businesses. One of the divisions WCF intended to shed was Mercury Athletic, its footwear division. Liedtke knew that acquiring Mercury would roughly double Active Gear’s revenue, increase its leverage with contract manufacturers, and expand its presence with key retailers and distributors. He also expected that Active Gear’s bankers would quickly approach the company about a possible bid for Mercury; consequently, he wanted to complete his own rough evaluation of the opportunity before hearing the bankers’ pitch. Athletic and Casual Footwear Industry Footwear was a mature, highly competitive industry marked by low growth, but fairly stable profit margins. Despite the industry’s overall stability, the performance of individual firms could be quite volatile as they vied with one another to anticipate and exploit fashion trends. The market for athletic and casual shoes remained fragmented, despite...
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...------------------------------------------------- ------------------------------------------------- Mercury Athletic Footwear: Valuing the Opportunity By Christian Daba Submitted To John Katkish Background West Coast Fashions, Inc has decided to sell one of their segments, Mercury Athletic in the context of a broader reorganization. The head of the business development for Active Gear, Inc(AGI), John Liedtke, views this event as a good opportunity to acquire Mercury Athletic. Acquiring Mercury, to a large extent, is driven by that Mercury would double Active Gear’s revenue, increase its leverage with contract manufacturers, and expand its presence with key retailers and distributors. More importantly, this is due to some inferior performance AGI is going through, mainly the small size does not put AGI in a dominating negotiating position with its contract manufacturers. Meantime, some possible synergies make Mercury Athletic a very appropriate target. However, John Liedtke has not completed his evaluation of this opportunity by using various methods. Qualitative valuation Firstly, there are some facts should be considered: 1. AGI and Mercury are in the same industry—footwear, and both have casual and athletic segments, and are located in North America. 2. Their brand images and target consumers are quite similar. AGI brand and logo are associated with a lifestyle hat was prosperous, active and fashion-conscious. Likewise, Mercury monitored styles and image that are from a global youth culture...
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...1. Mercury is properiate for AGI as long as AGI could acquire by a price not much higher than Mercury’s true intrinsic value. According to Liedtke’s analysis, this acquisition will almost double AGI’s size, which would give it some competitive advantages in both operating and financing. Additionally, according to table 2 and Ex1, AGI and Mercury have an exactly same operating metrics, including RONA, ROE, and Asset Turnover during the past three years, which also makes Mercury a proper target. Except for Women’s Casual Footwear division, which will be closed in one year after acquisition, the other three of Mercury all demonstrate a prosperous future prediction in margins and growth. 2. As shown in Appendix, Net Income Margin, NWC as % of Revenue, and Depr. as % of PPE projected by Liedtke maintains stable and reasonable, compared with both the industry average and Mercury’s previous performance. Specifically, revenue growth rate will drop by a large degree in 2008 for the reason that AGI plan to shut down the business of Women’s Casual Footwear. It is still reasonable because EBIT margin and other ratios will be stable and close that business will not hurt the business as a whole. However, the EBIT and EBITDA Margin are recommended to be lower than the projection because Mercury got most of its sales from discount promotions, and it is suggested to keep this strategy, which may lower down the margins. 1. 2. 3. 1. Projected Cash Flow is shown in appendix. The...
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...BUFN 750 Case 1: Mercury Athletic Footwear Section: 0502 Group members: Wenqi Fan (114332905) Shuhan Luo (114016706) Ruidong Li (114212986) Siyao Tian (114218377) Shuang Yang (114349156) Executive Summary: Mercury Athletic is the footwear division of West Coast Fashions (WCF), a designer and distributer of branded athletic and casual footwear, targeted at youth market. Due to strategy reorganization, WCF wanted to shed this segment. In the meantime, Active Gear, Inc., (AGI) looked to acquire Mercury from WCF, believing that the purchase would double its revenue and provide greater leverage with manufacturers and distributors. This case illustrated that Liedtke used base case assumptions to value Mercury, and also wanted to consider the value of possible synergies as well to justify that whether investing in Mercury would significantly improve AGI’s business. In order to achieve the above set goal, our group estimate financial data of the merged company from 2007-2011 based on each’s historical data. Regarding the DCF model valuation, using a WACC of 12.17% and long term growth rate 7.42% for the terminal value, then we concluded value of $458.31 million at the end of fiscal 2006. In addition, we primarily considered potential benefits and opportunities based on horizontal acquisition, which could bring about scale effect and resource complementary. Finally, these possible synergies should be taken into account to adjust our evaluation on acquisition. ...
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...John Liedtke, the head of business development for Active Gear, Inc. (AGI), a privately held footwear company, is faced with a potential acquisition opportunity. West Coast Fashions, Inc. (WCF) has decided to strategically reorganize its company, and one of the divisions it intends to shed is Mercury Athletic (MA), its footwear division. Lietdtke knows that acquiring Mercury Athletic would roughly double Active Gear’s revenue, increase its leverage with contract manufacturers, and expand its presence with key retailers and distributors. Before hearing the pitch from Active Gear’s bankers on a possible bid, Mr. Lietdke wants to do his own evaluation of Mercury Athletic first. From a qualitative perspective, MA is an appropriate target for AGI. There are some advantages that AGI should consider for the acquisition of MA. AGI will obtain more product diversification, technology advancement, and a larger distribution channel. That being said, Mr. Liedtke needs to figure out an estimated valuation for an expected bid offer. The valuation techniques that can be used for the acquisition of MA is the discounted cash flow (DCF) method while also looking at comparable metric ratios across the industry. Some comparable metrics that Lietdke could analyze for MA to compare across the industry are P/E, EV/EBIT, and EV/EBITDA. Lietdke should also be aware of potential problems associated with the DCF strategy. The problems outlined in chapter 9 include, the typical investment opportunity has...
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...course are available for download for a fee. Group Papers/Presentations: Each student will be put into a group, and each group will submit a paper and present a particular case. The paper should include the answers to the questions regarding the case assigned prior to the presentation day. Presenting a case involves summarizing the case, answering the questions, and leading a class discussion for the case based on the questions. Please do not change groups during the semester. Peer Evaluations: To prevent free-riding, I will ask that each group member fill out a confidential peer evaluation report by the end of the course. You should use the form to outline each team member’s contribution (excluding your own). Failure to submit an evaluation will result in a penalty of your overall grade. Case #1: Financial Institutions/Intermediaries; Corporate Governance “The Role of Capital Market Intermediaries in the Dot-Com Crash of 2000” Case #2: Valuation “Mercury Athletic Footwear: Valuing the Opportunity” Case #3: Capital Budgeting “Tokyo Disneyland and the DisneySea Park: Corporate Governance and Differences in Capital Budgeting Concepts and Methods Between American and Japanese Companies” Case #4: Cost of Capital “Lex Service PLC - Cost of Capital” Case #5: Dividend Policy “Dividend Policy at FPL Group, Inc....
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...(Incorporated in the Cayman Islands with limited liability) (Stock Code: 2331) Mission Through sports, we inspire people the desire and power to make breakthroughs Corporate Profile Li Ning Company Limited is one of the leading sports brand enterprises in the PRC, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group’s products mainly include footwear, apparel, accessories and equipment for sport and leisure uses under its own LI-NING brand. The Group has established an extensive supply chain management system, and a distribution and retail network in the PRC primarily through outsourcing of manufacturing operations and distribution via franchised agents. The Group also directly manages retail stores for the LI-NING brand. The Group adopts a multi-brand business development strategy. In addition to its core LI-NING brand, the Group distributes sports products under its Z-DO brand via hypermarket channel. The Group has established a joint venture with AIGLE under which the joint venture has been granted an exclusive right by AIGLE to manufacture, market, distribute and sell outdoor sports products under the French brand AIGLE for 50 years in the PRC. The Group has a controlling interest in Shanghai Double Happiness, which together with its subsidiaries are principally engaged in manufacture, research and development, marketing and sale of table tennis and other sports equipment under the Double Happiness...
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...Creative Problem Solving for Managers Second edition How can managers tackle complex problems? How do you encourage innovation? How do you implement new solutions? Is creativity the key to management success? This accessible text provides a lively introduction to the essential skills of creative problem solving. Using extensive case studies and examples from a variety of business situations, Creative Problem Solving for Managers explores a wide range of problem solving theories and techniques, illustrating how these can be used to solve a multitude of management problems. Thoroughly revised and redesigned, this new edition retains the accessible and imaginative approach to problem solving skills of the first edition. Features include: ■ ■ ■ ■ ■ Blocks to creativity and how to overcome them Key techniques including lateral thinking, morphological analysis and synectics Computer-assisted problem solving Increased coverage of group problem solving techniques New website containing in-depth cases and a PowerPoint presentation As creativity is increasingly being recognised as a key skill for successful managers, this book will be welcomed as a readable and comprehensive introduction for students and practising managers alike. Tony Proctor is Professor in Marketing at Chester University College Business School and was formerly Senior Lecturer in Marketing and Head of the Department of Management at Keele University. Creative Problem Solving for Managers Developing skills...
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...2014-2015 Undergraduate Academic Calendar and Course Catalogue Published June 2014 The information contained within this document was accurate at the time of publication indicated above and is subject to change. Please consult your faculty or the Registrar’s office if you require clarification regarding the contents of this document. Note: Program map information located in the faculty sections of this document are relevant to students beginning their studies in 2014-2015, students commencing their UOIT studies during a different academic year should consult their faculty to ensure they are following the correct program map. i Message from President Tim McTiernan I am delighted to welcome you to the University of Ontario Institute of Technology (UOIT), one of Canada’s most modern and dynamic university communities. We are a university that lives by three words: challenge, innovate and connect. You have chosen a university known for how it helps students meet the challenges of the future. We have created a leading-edge, technology-enriched learning environment. We have invested in state-of-the-art research and teaching facilities. We have developed industry-ready programs that align with the university’s visionary research portfolio. UOIT is known for its innovative approaches to learning. In many cases, our undergraduate and graduate students are working alongside their professors on research projects and gaining valuable hands-on learning, which we believe is integral...
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...Ingredient Branding Philip Kotler· Waldemar Pfoertsch Ingredient Branding Making the Invisible Visible Professor Philip Kotler Kellogg Graduate School of Management Northwestern University Evanston, IL 60208, USA p-kotler@kellogg.northwestern.edu Professor Waldemar Pfoertsch China Europe International Business School 699 Hongfeng Rd. Shanghai 201206, China wap@ceibs.edu e-ISBN 978-3-642-04214-0 ISBN 978-3-642-04213-3 DOI 10.1007/978-3-642-04214-0 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2010926489 © Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Germany Printed...
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...Marketing Management, Millenium Edition Philip Kotler Custom Edition for University of Phoenix Excerpts taken from: A Framework for Marketing Management, by Philip Kotler Copyright © 2001by Prentice-Hall, Inc. A Pearson Education Company Upper Saddle River, New Jersey 07458 Marketing Management Millenium Edition, Tenth Edition, by Philip Kotler Copyright © 2000 by Prentice-Hall, Inc. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Compilation Copyright © 2002 by Pearson Custom Publishing. This copyright covers material written expressly for this volume by the editor/s as well as the compilation itself. It does not cover the individual selections herein that first appeared elsewhere. Permission to reprint these has been obtained by Pearson Custom Publishing for this edition only. Further reproduction by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, must be arranged with the individual copyright holders noted. This special edition published in cooperation with Pearson Custom Publishing Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Please visit our web site at www.pearsoncustom.com ISBN 0–536–63099-2 BA 993095 PEARSON CUSTOM PUBLISHING 75 Arlington Street, Suite 300, Boston, MA 02116 A Pearson Education Company SECTION ONE Understanding Marketing Management Marketing in...
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...Multinational Corporations and Foreign Direct Investment This page intentionally left blank Multinational Corporations and Foreign Direct Investment Avoiding Simplicity, Embracing Complexity Stephen D. Cohen 1 2007 1 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Copyright # 2007 by Oxford University Press Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 www.oup.com Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data Cohen, Stephen D. Multinational corporations and foreign direct investment: avoiding simplicity, embracing complexity / Stephen D. Cohen. p. cm. Includes index. ISBN-13 978-0-19-517935-4; 978-0-19-517936-1 (pbk.) ISBN 0-19-517935-8; 0-19-517936-6 (pbk.) 1. International...
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...Contents Preface Acknowledgments Introduction 1 BRAIN POWER Myth #1 Most People Use Only 10% of Their Brain Power Myth #2 Some People Are Left-Brained, Others Are Right-Brained Myth #3 Extrasensory Perception (ESP) Is a Well-Established Scientific Phenomenon Myth #4 Visual Perceptions Are Accompanied by Tiny Emissions from the Eyes Myth #5 Subliminal Messages Can Persuade People to Purchase Products 2 FROM WOMB TO TOMB Myth #6 Playing Mozart’s Music to Infants Boosts Their Intelligence Myth #7 Adolescence Is Inevitably a Time of Psychological Turmoil Myth #8 Most People Experience a Midlife Crisis in | 8 Their 40s or Early 50s Myth #9 Old Age Is Typically Associated with Increased Dissatisfaction and Senility Myth #10 When Dying, People Pass through a Universal Series of Psychological Stages 3 A REMEMBRANCE OF THINGS PAST Myth #11 Human Memory Works like a Tape Recorder or Video Camera, and Accurate Events We’ve Experienced Myth #12 Hypnosis Is Useful for Retrieving Memories of Forgotten Events Myth #13 Individuals Commonly Repress the Memories of Traumatic Experiences Myth #14 Most People with Amnesia Forget All Details of Their Earlier Lives 4 TEACHING OLD DOGS NEW TRICKS Myth #15 Intelligence (IQ) Tests Are Biased against Certain Groups of People My th #16 If You’re Unsure of Your Answer When Taking a Test, It’s Best to Stick with Your Initial Hunch Myth #17 The Defining Feature of Dyslexia Is Reversing Letters Myth #18 Students Learn Best When Teaching Styles Are Matched to...
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...Downloaded by [University of Ottawa] at 14:44 24 March 2014 Football, Violence and Social Identity Downloaded by [University of Ottawa] at 14:44 24 March 2014 As the 1994 World Cup competition in the USA again demonstrates, football is one of the most popular participant and spectator sports around the world. The fortunes of teams can have great significance for the communities they represent at both local and national levels. Social and cultural analysts have only recently started to investigate the wide variety of customs, values and social patterns that surround the game in different societies. This volume contributes to the widening focus of research by presenting new data and explanations of football-related violence. Episodes of violence associated with football are relatively infrequent, but the occasional violent events which attract great media attention have their roots in the rituals of the matches, the loyalties and identities of players and crowds and the wider cultures and politics of the host societies. This book provides a unique cross-national examination of patterns of order and conflict surrounding football matches from this perspective with examples provided by expert contributors from Scotland, England, Norway, the Netherlands, Italy, Argentina and the USA. This book will be of interest to an international readership of informed soccer and sport enthusiasts and students of sport, leisure, society, deviance and culture. Richard Giulianotti, Norman...
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