...Case 15-1: Private Fitness LLC* Private Fitness LLC is a springboard case that can be used as the basis of a discussion of management's need for information. It serves the same purpose for Part 2 of the book that the Kim Fuller case did for Part 1. Approach This case uses a small business as its setting so that students can visualize the business's activities, and so questions of generally accepted accounting principles will be essentially irrelevant. In fact, a shift the student needs to make as he/she begins Part 2 of the book is to think of accounting primarily in terms of its usefulness to a company's management, rather than in terms of reporting to shareholders and other outside parties. Because of the differing focus of Part 1 of the book, particularly the later chapters, some students will forget that they are dealing here with information for an apparently unsophisticated manager to help her run a small business, and not data for a NYSE company. This case is compelling both because students understand the business—fitness-training—and because there is a real problem to discuss. A trusted employee was both stealing cash and, by not recording all sales, diverting some revenues to herself. Discussion of this simple case helps students think about both the records needed to run the business and the challenges managers face in making sure the information put into the records is recorded accurately (i.e., the challenges faced in maintaining an effective internal control...
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...PRIVATE FITNESS, LLC Background/Issues and Concern: • Acts of Kate with regards to the theft • Rosemary and Kate are long-time friend • Rosemary wanted to increase her standard of hiring by capitalizing on her reputation and knowledge in the growing fitness field and to have more time to spend with her two young children • Rosemary wants to protect her assets Problem Statement: How should Rosemary address her prolem with regards to the situation with Kate as well as in protecting her assets? Point of View: Rosemary Worth, the owner of the Private Fitness, LLC Objectives: 1. to strengthen the controls of the business 2. to eliminate theft and any other kind of fraud which can harm the entity 3. to operate and earn revenues effectively and efficiently Areas of Consideration: 1. The market of their business 2. The acts of Kate 3. The goal of Rosemary 4. Protection of assets 5. Rosemary’s situation Alternative Courses of Action: 1. Fire Kate and hire one of the remaining instructors as a manager Advantages: • Possible thief will be reduced • Kate can no longer steal from the business Disadvantages: • Chance of Kate of proving that she can change and be a faithful employee would be lost • The new assigned instructor as manager might do the same 2. Fire Kate and hire a new person as a manager other than...
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...I. Background/Issues and Concern Rosemary Worth was talking about the consequences of a theft that had recently occurred at the business she owned, Private Fitness, LLC. Private Fitness is a small health club located in Rancho Palos Verdes, California, an upscale community located in the Los Angeles Area. As manager of the business, Rosemary hired Kate Hoffman, one of the instructors and a long-time friend. Kate’s primary tasks included marketing, facility upkeep, scheduling of appointments, and record keeping. II. Problem Statement What should be the procedures or controls that Rosemary could use to protect her business’s assets? III. Point of View There is an existing employee fraud in the company done by Kate, who is a long-time friend and at the same time, valuable instructor and marketer. Since this is a serious offense made by Kate, a better control is needed to avoid incidents like these. Another thing is the company is not yet stable when it comes to policies/regulations. Proper segregation or delegation of duties must be done. Only one person is designed to do the recording of revenues and receiving of cash which is Kate. That’s the reason why Kate can have the opportunity to conceal fraud. IV. Objectives Specifically, the objectives of the study are the following: 1. To ensure that revenues are all recorded; 2. To make sure cash and cash in bank be equal to revenue recorded; and 3. To implement a better internal...
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...CASE STUDY: PRIVATE FITNESS, LLC I-Summary Private Fitness, LLC a private fitness owned by Rosemary Worth, a small health club which is located in Rancho Palos Verdes, California- an upscale community located in Los Angeles area. The services offered by the club were personal fitness training and fitness classes of various types including aerobics, spinning, body sculpting, air boxing, kickboxing, hip hop, step and pump, dynamic stretch, Pilates and yoga. Private Fitness LLC Rate for services offered: Services Offered Rate per hour Personal training client’s $ 50/hr Prime Time (5:30-9:00 am & 4:00-9:00 pm) $ 50/hr Lean Time (9:00 am-4:00pm) $ 35/hr Students $ 12/hr Discounts for prepayments Private Fitness LLC established in the motivation and inspiration of Rosemary Worth as a former finalist in Ms. Fitness USA competition and since she was an aerobics instructor she decided to start her own Private Fitness by using her personal savings plus a bank loan in order to renovate the facility of her club and acquire necessary fitness equipments by spending $150,000. Rosemary herself ran most the spinning classes and some aerobics classes. Also she contracted with five instructors. The instructors were paid on commission which ranged, between 20% and 50% of revenue. She also hired Kate Hoffman, one of the instructors and long-time friend. Kate’s primary task included marketing, facility upkeep, scheduling of appointments and record keeping...
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...I. Background/Issues and Concern Rosemary Worth was talking about the consequences of a theft that had recently occurred at the business she owned, Private Fitness, LLC. Private Fitness is a small health club located in Rancho Palos Verdes, California, an upscale community located in the Los Angeles Area. As manager of the business, Rosemary hired Kate Hoffman, one of the instructors and a long-time friend. Kate’s primary tasks included marketing, facility upkeep, scheduling of appointments, and record keeping. II. Problem Statement What should be the procedures or controls that Rosemary could use to protect her business’s assets? III. Point of View There is an existing employee fraud in the company done by Kate, who is a long-time friend and at the same time, valuable instructor and marketer. Since this is a serious offense made by Kate, a better control is needed to avoid incidents like these. Another thing is the company is not yet stable when it comes to policies/regulations. Proper segregation or delegation of duties must be done. Only one person is designed to do the recording of revenues and receiving of cash which is Kate. That’s the reason why Kate can have the opportunity to conceal fraud. IV. Objectives Specifically, the objectives of the study are the following: 1. To ensure that revenues are all recorded; 2. To make sure cash and cash in bank be equal to revenue recorded; and 3. To implement a better internal control. ...
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...It is not easy to become a corporate company. When entrepreneurs like Rosemary enters the market with limited sources, the very important thing is to create a team. The team members should be professional of their business in accordance with the jobs that they are doing. Rosemary is an instructor and she also hired 5 instructors to run the classes and training sessions. It is very suitable to hire instructors for training. And training is also a field that Rosemary has experience. Apart from them, she hired Kate Hoffman who also has an instructor experience and a close friend of her. Rosemary has given the marketing, facility up keep, scheduling and record keeping responsibilities to her. Although Kate has no experience on those specialized fields, Rosemary also has a limited knowledge about those tasks. It is very dangerous for a manager to give disproportionate responsibilities to the employees. If as a manager or company owner, you are not an expert on the marketing, accounting, human resources and other department’s functions, it is a good idea to hire professionals or receive consultancy. To run a company, it is not only enough to know the technical functionalities. The company should at least have a trustable accountant and cash handler in order to control the money flow. Since Rosemary is not an accountant it is very easy for her to lose the control about the company records. It is very clear that Kate is telling lie to Rosemary and unfortunately she has no records...
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...Peapod Tina Phillips Rasmussen College Peapod Peapod, LLC is an online grocery delivery service. Peapod was founded by Andrew and Thomas Parkinson in 1989 as a lifestyle solution for busy families. In 1990, Peapod partnered with Jewel Food Stores to fulfill orders. In the beginning, Andrew, Thomas and their families did the shopping and packing and made deliveries with their own cars. (“Our company”) They joined the internet in 1996 when they created and launched their own website, www.peapod.com, they also made the Inc. 500 list of fastest growing privately held US companies. Peapod was associated with Jewel until 1999 when it opened a facility in Niles, Illinois, and started picking orders from there. Using their own picking center helped them control inventory and product quality. (“Our company”) In 2000, Peapod became a wholly-owned subsidiary of Royal Ahold, the international food provider based in The Netherlands, and pursued exclusive relationships with Ahold USA grocers, Stop & Shop and Giant Foods. Peapod was grown slowly and wisely by leveraging partnerships with other established companies. In mid-2001, when competitors like Webvan were going out of business, Royal Ahold purchased the remaining outstanding shares of Peapod, making Peapod the leader in the online grocery space. Since Peapod joined forces with Ahold they now serve more than 355,000 customers each year. (“Our company”) Peapod operates under a centralized distribution model with...
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...across 24 U.S. markets. As in other pure-play online and clicks-and-bricks alliances, what Peapod brings to the partnership is e-commerce and home shopping expertise, web-based software and ordering systems, web marketing and additional information technology (IT) skills. Ahold’s contributions lie in its considerable buying power, real estate, strong store brand recognition, extensive customer base and category management expertise Products Peapod features over 8,000 products in a range of categories: produce; meat and seafood; deli items; prepared foods; natural and organic foods; Kosher foods; office and school supplies; seasonal items; video products; pet items; health and beauty aids; wine, beer and spirits (in specific markets); and private labels from Stop & Shop and Giant. Markets Served * Illinois - Greater Chicago land * Wisconsin - Milwaukee, Kenosha, Racine, Madison * Indiana - Portions of Lake County in Northwest Indiana * Maryland * District of Columbia * Virginia – Northern part of state (most communities in Fairfax, Manassas and Loudoun Counties) * Massachusetts - Eastern part of state (most communities in Barnstable, Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk and Worcester Counties) and select towns in the Pioneer Valley of western Massachusetts * Connecticut - Statewide (except Litchfield and Windham Counties) * Rhode...
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...Peapod Online Grocery Case Analysis Abstract This paper explores Peapod Online Grocery (2008) and its possibilities for success and failure based on several types of consumer behaviors. Most analysts do not expect the online grocery business to become more popular than the 8 to 10 percent of consumers that are estimated to purchase their products online. Parkinson, one of the founders of Peapod could not disagree more. “He states that this strategy can leverage the buying power of Ahold to make higher volume, lower priced purchases, lower distribution and transportation costs” ( Peter & Olson, 2010). The types of consumers attracted to online grocery shopping are also discussed as well as why these consumers find online grocery services to be convenient. Peapod Grocery Case Analysis Peapod online grocery was founded in 1989 by brothers Andrew and Thomas Parkinson. Back in the early 1990’s, Andrew and Thomas Parkinson believed that they had a sure winner with Peapod. Dual income families with little time can go online and do their grocery shopping in a matter of minutes. Consumers can browse the aisles on their home computer and place orders online, by fax machine or by telephone. The orders are then processed at affiliating stores and delivered to homes with in a 90 minute window. Peapod has grown from a small family shopping and delivery service in Illinois to America’s leading Internet grocer. Peapod delivers to more than 23 million orders across 24...
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...As we approach the new millennium, satellite-based communication systems will be the next frontier for this industry. They will assume a vital role in infrastructure, securing telecommunication links during disasters and supporting humanity's space-based efforts. A new epoch in space-based wireless communications has already begun with the deployment of two low-Earth-orbiting (LEO) communication satellite systems: Iridium and Globalstar. The Motorola-led Iridium consortium successfully launched the last five satellites in its strong network during the last year. The entire Iridium network integrates terrestrial phone systems and satellites. Several other satellite systems having global or broad geographical coverage will join this new arena within the next 3 to 4 years, thereby complementing and extending existing terrestrial wireless services. Users of conventional terrestrial cellular services, business people, travelers, maritime vessels, aeronautical and industrial facilities, journalists, government agencies, the Coast Guard and emergency-related organizations, others on the go, and people living in sparsely populated areas will be able to communicate with each other via these services. Satellite-based mobile communication systems are characterized by the distance of their satellites from Earth. LEO satellites are typically located 310 miles (500 kms) to 932 miles (1,500 kms) above the planet, whereas medium-Earth-orbit (MEO) versions are located from 3,100 miles...
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...THE STATE UNIVERSITY OF NEW YORK At NEW PALTZ “Great Food. Low Prices. Friendly Service.” STRATEGIC MARKETING PLAN GROUP 5: DUYGU KAYACIOGLU JENNIFER CASTILLO ANNA TRUONG-CHAU SCARLETT PANEPINTO ABDON WADE DR. RUSSELL ZWANKA BUS 429-01 Marketing Strategy Monday, November 16, 2015 Table of Contents ● Executive Summary………………………………………………………… 2 ● Stop & Shop Description…………………………………………………… 3 ○ Overview, History and Successes of Company ● Stop & Shop Strategic Plan and Focus………………………………….. 4 ○ Mission/Vision ○ Financial and Nonfinancial Goals ○ Core Competencies and Sustainable Competitive Advantage ● Situational Analysis………………………………………………………….. 6 ○ Microenvironment ○ Macroenvironment ○ SWOT Analysis (Macro and Microenvironment Factors).... ● Market-Product Focus……………………………………………………… 10 ○ Growth Strategies ○ Target Markets ● Marketing Program Strategy and Tactics……………………………….. 12 ○ 4 Elements of Marketing Mix Strategy...
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...Contents BUSINESS ETHICS REPORT 1 1. Introduction 3 2. The Growth Story: Expanding Boundaries 4 3. Problems Due to Expansion 5 4. Response towards the Problems and Further Issues 6 5. Accounting Issues 6 Fraudulent Accounting at U.S. Foodservice 7 6. The Aftermath 7 Role of the Auditor 8 Regulatory Bodies 8 7. The Verdict 8 8. The Road to Recovery program 8 1. Introduction Headquartered in the Netherlands, Royal Ahold is one of the world’s largest international retail grocery and food service companies. At its peak in 2001, Ahold’s reported sales and profits were €66.6 billion and €1.1 billion and it operated 5,155 stores in 27 countries with nearly a quarter of a million employees. Ahold was started as a family firm in 1887 by the Heijn family. It was a family-controlled business, operating primarily in the Netherlands for over 100 years. The company went public in 1948. In 1989, Ahold underwent a major transition from a family-controlled to a management controlled firm. This transition resulted in a phenomenal period of success for the firm. It generated over a 1,000% return for its shareholders and had a market capitalization of €30.6 billion by November 2001. In February 2003, Ahold witnessed a reversal of fortunes and suffered a complete meltdown. The firm was in a complete disastrous state with nothing going in their favour: a failed strategy, an accounting scandal, the firing of professional management, and litigation filings from all parts of...
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...The Wall Street Journal Private-Equity Firms Notch Up Gains but Face Investing Challenges; Strong Debt and Stock Markets Have a Flip Side By Ryan Dezember Feb. 20, 2014 In a year of record-setting profits, the big publicly traded U.S. private-equity firms were rewarded by investors with billions of dollars of new money for their next round of buyouts. Yet the same frothy debt and stock markets that have made it an ideal time for these firms to sell companies have made it increasingly difficult to buy new ones. "It was a challenging year to invest, particularly in the United States," Carlyle Group LP's co-founder and co-chief executive, William Conway, told investors Wednesday after the firm reported its fourthquarter and full-year earnings. "This was the flip side of robust public markets and low interest rates." The fourth quarter was Carlyle's most profitable as a public company, with earnings up sharply from a year earlier. Carlyle's economic net income, a measure of profits favored by buyout firms, was $576 million, or $1.64 a share, up from $182 million, or 47 cents a share, a year earlier. Analysts polled by FactSet forecast 96 cents a share. The Washington firm sold $6.3 billion in assets in the fourth quarter to fuel the gains. Those sales came predominantly from its corporate buyout funds, which shed big stakes in companies such as ratings firm Nielsen Holdings NV and Allison Transmission Holdings Inc. as well as entire companies. For the year, Carlyle reaped deal...
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... all available within the borders of the Boro ugh Park community , and all health facilities are all accessible by car and public transportation, including subways and buses. I noted limited garden landscaping and very few animals while walking through the community . The lack of space for landscapin g lessens the threat of poisonous plant availability or soil to threaten children and animals with plant or soil borne disease. Similarly, I saw only a few stray cats, and no dogs or rats limiting the possibility of disease spread through animals. The re are numerous private schools in, and surrounding, zip code 11219 but only a few public schools. I found no reports of overcrowding in the public school system, though World Media Group, LLC (2013) reports that the public school system in zip code 11219 is ranked above average. All school buildings, private and public, appeared in good repair though, in some instances, there was limited space for children to play outside. Public protection is evident with numerous EMS services, including several volunt eer ambulance services. One police precinct is located in zip code 11219 . The closest Fire Department is in Sunset Park. P EOPLE : At 4pm mostly women and children were on the street. Many...
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...Private Equity 4/12/15, 7:31 PM Private Equity By root | November 25, 2003 DEFINITION Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet. The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public company. INVESTOPEDIA EXPLAINS The size of the private equity market has grown steadily since the 1970s. Private equity firms will sometimes pool funds together to take very large public companies private. Many private equity firms conduct what are known as leveraged buyouts (LBOs), where large amounts of debt are issued to fund a large purchase. Private equity firms will then try to improve the financial results and prospects of the company in the hope of reselling the company to another firm or cashing out via an IPO. © 2015, Investopedia, LLC. http://www.investopedia.com/terms/p/privateequity...
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