...I. Exec summary O.M. Scott & Sons company is a company that processes clean, weed-free grass seed since 1868. Over the years, its product line has evolved into a wide variation of farm seeds and total lawn care systems. Between 1955 to 1961, the company implemented different programs to market and distribute its product with the aim to increase the company’s past success and growth. Due to these efforts, sales increased from about $10 million to $43 million. However, even with certain policies in place, results of 1961 operations showed that the company’s net income decreased despite the increase in sales. In late 1961, the company’s officials, with the numbers showing the results of operations, geared for the production year ahead. II. Problem Institutional What changes should the company implement to effectively manage its distribution channel, in order to increase market share and profitability Operational What changes should the company implement to improve its collection on receivables, manage inventories turnover, and marketing in order to increase profit III. Corporate Objective A. To be the market leader in grass, and farm seed industry B. To be able to implement effective marketing and sales programs through profitable product lines and effective distribution system C. To be able to effectively manage expenses in the distribution level IV. Areas of consideration Macro-Economic indicators Political The year 1950s was generally characterized...
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...A Case Study on O.M Scott & Sons Co. Table of Contents Objective……………………………………………………….…………1 Company Background……………………………………………………1 Ratio Analysis…………………………………………………………….1 Pro Forma Analysis……………………………………………………….3 Sensitivity Analysis……………………………………………………….3 Recommendations for Management………………………………………4 Summary of Case Study…………………………………………………..4 Appendix………………………………………………………………….5 Objective This paper will seek to analyze the financial statements of the O.M Scott & Sons Company during the years 1957-1961, in order to provide readers with a thorough understanding of the various factors that may influence the future success of this business. Additionally, recommendations based on an analysis of their financial statements will be offered for the management of O.M Scott & Sons to implement in the following years. Company Background Headquartered in Ohio, the O.M Scott & Sons Company has operated in the lawn care industry since 1868 and has grown into a successful business with a positive outlook. In fact, management within the company set an ambitious goal of increasing annual growth rate in sales and profits to 25% in the year 1959. According to management, one of the main factors limiting O.M Scott & Sons companies’ growth was the inability for their dealers to carry a sufficient amount of stock for customers. However, company officials feel that their use of a trust receipt program and other decisions will benefit the company’s current financial...
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...Short-Term Sources of Funds Subject:O.M. Scott & Sons Company Problem:Should the O.M.Scott company keep with its Trust Receipt Plan in order to maintain 25% growth rate. Options: 1. Sell receivables to a third party at a discount rate to receive cash. 2. Issue preferred equity to help finance retailers in holding higher Inventory levels 3. Reduce growth rate to a sustainable Recommendation: In order to maintain the 25% growth, we need to first of all, abandon the trust receipt plan which causes sales growth rate to drop ever since implementation. we need to adopt alternative 1 (selling receivables) in order to reduce the cash cycle and free up some cash to meet our short term liabilities. Our external fund needed exceeds the maximum allowed line of credit of 12.5 million according to the performa for March 1962, which means that we have to also incorporate alternative 2 which is to issue equity to cover for extra fund outside of the limit. Analysis: O.M. Scott & Sons (Scott) is a lawn-care company that has its operations centered in Ohio. The company has successful established a customer base and has a positive outlook for future operations. Their goal for future years is to maintain a growth of 25% for sales and income, however, we believe that this is not plausible because receivables are not being collected at a rate that supports the growth in sales. This is the main source of the problem for the company is not getting paid for its inventory until...
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...was so important that they made provisions for it in the first article of the United States Constitution. This paper will explore habeas corpus and the war on terror. Historians believe that the first time the term “habeas corpus” was known was around 1305 in England. It is thought to have been a part of the Magna Carta, signed into law by King John. The original wording of Article 39 of the Magna Carta, stated, “No freeman shall be taken, or imprisoned, or disseized, or outlawed, or exiled, or in any way harmed- nor will we go upon him- save by the lawful judgement of his peers or by the law”, Mcelroy, W. (2009). The Magna Carta was rewritten in 1628, parliamentarian Sir Edward Coke is believed to be one of the authors of the Virginia Company charter, for the American colonies. It is noted that our Founding Fathers used the idea of the new Habeas Corpus Act of 1679 to write our own. Although they drew their inspiration from England, they changed it tremendously. “The Founding Fathers in America, wrote this bill in order to ensure...
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...OM Scott Case This is the story of the leveraged buyout of Scotts Company by a private equity firm, Clayton and Dubiler (C&D). Scotts Company was acquired from ITT. ITT was a global conglomerate with major holdings in Telecommunications, Entertainment, Insurance, and industrial products. The following is extracted from a brief history of IT (http://www.itt.com/_docs/news/pubs/itt-history-book-2011-eng-spread.pdf) ITT’s origins span more than one hundred years from the second industrial revolution to the computer age. During that time, the company expanded through acquisitions to become one of the world’s biggest businesses and then narrowed its focus to achieve a place as one of the top financial performers among multi-industry companies on Wall Street. We didn’t follow the crowd. Instead we created our own path and helped fine-tune the concept of a multi industry company that generates value from a shared management approach and synergies between our businesses. The following is extracted from C&D’s mission statement (http://www.cdr-inc.com/about/building_businesses.php): Question: C&D forced a number of changes on the Management Control System of Scotts. Some of these are discussed in the case: 1) Incentive Compensation, 2) Management Decision-Making Authority, 3) Monitoring and Advising Management. Why were these changes needed? O.M. Scott & Sons Company Leveraged Buyout Debt Covenants The organizational changes that Scott went through after...
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...FIN 4414 Financial Management Course Syllabus Spring 2010 Term INSTRUCTOR: Dr. T. Craig Tapley Graham-Buffett Master Lecturer of Finance Section: Section: Room: 2109 – Monday and Wednesday, Periods 3-4 (9:35 a.m. – 11:30 a.m.) 7111 – Monday and Wednesday, Periods 5-6 (11:45 a.m. – 1:40 p.m.) 112 Matherly Hall Office Hours: Wednesday (2:00 p.m. - 3:00 p.m.) Thursday (1:00 p.m. - 2:30 p.m.) CONTACT INFORMATION: Office: Phone: Fax: E-Mail: 329 David Stuzin Hall (352) 392-6654 (352) 392-5237 ctapley@ufl.edu http://vista.courses.ufl.edu/ Class Webpage: COURSE MATERIALS: TEXTBOOK 1. Financial Management: Theory and Practice (12th Edition), Eugene F. Brigham and Michael C. Ehrhardt, Thompson/South-Western, 2008, ISBN: 0-324-42269-5. The official textbook for the class will be an excellent reference book as you start your career, as you may easily find that there will be times, on the job, when you need to reference prior material, or formulas, covered in your corporate finance classes at UF. However, books have become somewhat expensive, so you may, instead, purchase the 11th or 10th Edition of the book, typically at a cheaper price, through various online booksellers. However, there are minor differences between the 10th, 11th, and 12th editions; mainly in the order of the chapter. These differences should not impact your ability to perform well in this class, but you may need to map the chapters in the 10th or 11th Edition to those assigned in the 12th Edition. This is...
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...1 CHAPTER I CHAPTER II CHAPTER III CHAPTER IV CHAPTER V CHAPTER VI CHAPTER VII CHAPTER VIII CHAPTER IX CHAPTER X CHAPTER XI CHAPTER XII CHAPTER XIII CHAPTER XIV CHAPTER XV CHAPTER XVI Chapter XVIII CHAPTER XVII CHAPTER XVIII CHAPTER XIX CHAPTER XX CHAPTER XXI CHAPTER XXII CHAPTER XXIII CHAPTER XXIV CHAPTER XXV CHAPTER XXVI CHAPTER XXVII CHAPTER XXVIII CHAPTER XXIX CHAPTER XXX CHAPTER XXXI The Art of Public Speaking BY 2 The Art of Public Speaking BY J. BERG ESENWEIN AUTHOR OF "HOW TO ATTRACT AND HOLD AN AUDIENCE," "WRITING THE SHORT-STORY," "WRITING THE PHOTOPLAY," ETC., ETC., AND DALE CARNAGEY PROFESSOR OF PUBLIC SPEAKING, BALTIMORE SCHOOL OF COMMERCE AND FINANCE; INSTRUCTOR IN PUBLIC SPEAKING, Y.M.C.A. SCHOOLS, NEW YORK, BROOKLYN, BALTIMORE, AND PHILADELPHIA, AND THE NEW YORK CITY CHAPTER, AMERICAN INSTITUTE OF BANKING THE WRITER'S LIBRARY EDITED BY J. BERG ESENWEIN THE HOME CORRESPONDENCE SCHOOL SPRINGFIELD, MASS. PUBLISHERS Copyright 1915 THE HOME CORRESPONDENCE SCHOOL ALL RIGHTS RESERVED TO F. ARTHUR METCALF FELLOW-WORKER AND FRIEND Table of Contents THINGS TO THINK OF FIRST--A FOREWORD * CHAPTER I--ACQUIRING CONFIDENCE BEFORE AN AUDIENCE * CHAPTER II--THE SIN OF MONOTONY DALE CARNAGEY * CHAPTER III--EFFICIENCY THROUGH EMPHASIS AND SUBORDINATION * CHAPTER IV--EFFICIENCY THROUGH CHANGE OF PITCH * CHAPTER V--EFFICIENCY THROUGH CHANGE OF PACE * CHAPTER VI--PAUSE AND POWER * CHAPTER VII--EFFICIENCY THROUGH INFLECTION * CHAPTER VIII--CONCENTRATION IN DELIVERY...
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