Premium Essay

Proposal Recommendation for Heritage Case

In:

Submitted By Morox
Words 312
Pages 2
Proposal Recommendations
Based on my financial analysis of the two proposals, I suggest we recommend “Match My Doll Cloth Line” project over “Design Your Own Doll” project. The “Match My Doll Cloth Line” expansion will be a safer and more profitable investment for New Heritage.
A forecast of cash flow for the next 10 years was developed for both projects. It is found that NPV for the two projects are very close, with Matching My Doll Cloth Line’s at $7,648 and Design Your Own Doll’s at $7,996. However, the Matching My Doll Cloth Line expansion has a higher IRR (20%) compared to Design Your Own Doll (15%). It requires significant less capital expenditure initially ($1,470K vs. 4,610K) and over the next ten years. It also has a less payback period (~6 years vs. ~9 years). The cash flow forecast model for the Matching My Doll Cloth Line project assumed 8.4% discount rate. This project is less risky than the Design Your Own Doll project (9% discount rate assumed) because it is less capital intensive and will pay back faster.
There are other factors that are difficult to be evaluated on a numerical basis but nonetheless very important to consider. For example, which project is more consistent with our core value/company brand image? New Heritage Dolls has been focusing on offering “intergenerational experience” for grandmothers, mothers and daughters. The Matching My Doll Cloth Line will enhance our existing customers’ experience by bringing new elements to their cross-generation dolls and increasing the fun that grandmother, mother and daughter can have together during the play time. On the other hand, the “Design Your Own Doll” project won’t be able to offer (maybe even sabotage) the sentimental value that passed down from mother to daughter through the cross-generation dolls. It is obvious that the Matching My

Similar Documents

Premium Essay

People

...Skip to Navigation Skip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory Join Search Browse Saved Papers Search Home page » Business and Management New Heritage DollIn: Business and Management New Heritage Doll New Heritage Doll Company: Capital Budgeting MGT 6060 20 September 2011 Overview Two business proposals from the Production division of the New Heritage Doll Company are being considered for submission to the capital budgeting committee. Only one proposal will be submitted. The proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will be used to determine which proposal to recommend. Criteria Include: 1. Comparison of the business cases 2. NPV analysis 3. IRR and payback period analysis 4. Analysis of additional information 5. Recommendation Comparison of the Business Cases Most Compelling Business Case Match My Doll Clothing Line Expansion Match My Doll Clothing Line Expansion is the the most compelling opportunity. This initial recommendation is based solely on a qualitative comparison of the cases and the financial exhibits provided by the brand managers. A SWOT (Strength, Weakness, Opportunity, & Threat) analysis was used to aid the decision process. See Tables 1 & 2 for SWOT analysis. Benefits of the Match My Doll Clothing Line Expansion: * Success of the original line of business ...

Words: 339 - Pages: 2

Premium Essay

New Heritage Doll Company Case

...NEW HERITAGE DOLL COMPANY FINA 6278 Case 1 I. Executive Summary New Heritage Doll Company is a U.S based children toy manufacturer with a well-known national brand: the New Heritage. With its existing three divisions, New Heritage proposed two potential investment projects in order to expand its business while the doll industry was facing a relatively low growth rate. The first proposal is the Match My Doll Clothing line expansion, which is to expand a new clothing product line aimed at matching doll and child clothing and accessories covering all four seasons. While it has potential benefits with the current fashion trend of dressing the same between dolls and children, the New Heritage is facing a challenge of entering a new field and the doubt of being continuable project or not even with a success of the first sale of the cloth collection. The second proposal is a high-end product line which is called Design Your Own Doll that targets at the firm’s existing loyal customers who already held several heritage dolls. Such a project is appropriate with the company’s core business. However, it requires large amount of investment and longtime payback period. Considering the benefits and disadvantages of both the projects, the second proposal seems more compelling due to its match of firm’s core business, longer-term focus, and possibility to enhance customer loyalty. However, the question to expand customer pool was not answered yet. As a result, the second...

Words: 1835 - Pages: 8

Premium Essay

New Heritage Doll

...New Heritage Doll New Heritage Doll Company: Capital Budgeting MGT 6060 20 September 2011 Overview Two business proposals from the Production division of the New Heritage Doll Company are being considered for submission to the capital budgeting committee. Only one proposal will be submitted. The proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will be used to determine which proposal to recommend. Criteria Include: 1. Comparison of the business cases 2. NPV analysis 3. IRR and payback period analysis 4. Analysis of additional information 5. Recommendation Comparison of the Business Cases Most Compelling Business Case Match My Doll Clothing Line Expansion Match My Doll Clothing Line Expansion is the the most compelling opportunity. This initial recommendation is based solely on a qualitative comparison of the cases and the financial exhibits provided by the brand managers. A SWOT (Strength, Weakness, Opportunity, & Threat) analysis was used to aid the decision process. See Tables 1 & 2 for SWOT analysis. Benefits of the Match My Doll Clothing Line Expansion: * Success of the original line of business * Utilization of the businesses existing strengths * Long term ability for the product to stay up to date and drive business Concerns for the Design Your Own Doll: * High risk associated with developing a proprietary software system * Complexity of manufacturing * High break-even sales volume Overview Business...

Words: 1840 - Pages: 8

Premium Essay

Capital Budegting

...New Heritage Doll Company – Capital Budgeting Harvard Business School – Case 4214 The New Heritage Doll Company’s production division has been has given the responsibility of evaluating two proposals for new projects. The first project expands on a current “Match My Doll Clothing Line”, and the second involves creating a fully customized doll under the “Design Your Own Doll” proposal. Proposal Backgrounds Match My Doll Clothing Line Expansion (MMDCLE) The Match My Doll Expansion includes the further development of an already establish, successful doll line. The original line included limited outfits and accessories for warm weather only. It had become a popular line once celebrity children were photographed wearing the clothing and also when prevalent magazines showcased the items in the trendy clothing sections. The brand manager of this line has expressed her belief that this publicity will help the sales of the new “All Seasonal Collection” clothing take off. The new clothing expands the line from only warm weather apparel to clothing and accessories for all seasons. The supplier prices for the material to produce this clothing is low and will help the bottom line as selling price for the dolls/clothing can be at a premium due to the current buzz around the products. This line will also help end the seasonal sales that New Heritage has been experiencing due sales of only summer related items. The new expansion will however require high research and development...

Words: 879 - Pages: 4

Premium Essay

New Heritage Doll

...New Heritage Doll Company: Capital Budgeting MGT 6060 20 September 2011 Overview Two business proposals from the Production division of the New Heritage Doll Company are being considered for submission to the capital budgeting committee. Only one proposal will be submitted. The proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will be used to determine which proposal to recommend. Criteria Include: 1. Comparison of the business cases 2. NPV analysis 3. IRR and payback period analysis 4. Analysis of additional information 5. Recommendation Comparison of the Business Cases Most Compelling Business Case Match My Doll Clothing Line Expansion Match My Doll Clothing Line Expansion is the the most compelling opportunity. This initial recommendation is based solely on a qualitative comparison of the cases and the financial exhibits provided by the brand managers. A SWOT (Strength, Weakness, Opportunity, & Threat) analysis was used to aid the decision process. See Tables 1 & 2 for SWOT analysis. Benefits of the Match My Doll Clothing Line Expansion: * Success of the original line of business * Utilization of the businesses existing strengths * Long term ability for the product to stay up to date and drive business Concerns for the Design Your Own Doll: * High risk associated with developing a proprietary software system * Complexity of manufacturing * High break-even sales...

Words: 1848 - Pages: 8

Premium Essay

Jebise

...Online Assignment Help For Students MBA FM MODULE ASSIGNMENT 2 MAY 8, 2014 | ADMIN       Write a report for the New Heritage Doll Company on which new product they should adopt supporting your argument with full workings. This is an individual project.   New Heritage Doll Company Report INTRODUCTION New Heritage Doll Company is a firm that has ventured into Doll production which has sought to extend its brand in order to broaden its market framework and more importantly capitalise on high levels of customer loyalty. The vice president of the Company, Emily Harris is to forward her project proposal to the Budgeting Committee for evaluation. The Vice-president’s objective for proposing the project stood out based on potential to strengthen the Company’s division of production and to drive future growth. Emily Harris has to produce a compelling project to avoid the committee to decline the proposal.   Basis of assessment There are two projects between which the company will have decision option to accept or drop the proposal. The method of project evaluation would be based on discounting cash flows (DCFs) and thereafter determining the Net Present value (NPV) of each of the proposed project. The project proposal with the positive and highest NPV would be acceptable for investment. If the project has a positive NPV suggests that such a project is generating more cash than is required to service the debt and to provide the appropriate returns to the firm’s shareholders and...

Words: 1739 - Pages: 7

Premium Essay

Case Study Research

...Online Assignment Help For Students Search SKIP TO CONTENT MBA FM MODULE ASSIGNMENT 2 MAY 8, 2014 ADMIN       Write a report for the New Heritage Doll Company on which new product they should adopt supporting your argument with full workings. This is an individual project.   New Heritage Doll Company Report INTRODUCTION New Heritage Doll Company is a firm that has ventured into Doll production which has sought to extend its brand in order to broaden its market framework and more importantly capitalise on high levels of customer loyalty. The vice president of the Company, Emily Harris is to forward her project proposal to the Budgeting Committee for evaluation. The Vice-president’s objective for proposing the project stood out based on potential to strengthen the Company’s division of production and to drive future growth. Emily Harris has to produce a compelling project to avoid the committee to decline the proposal.   Basis of assessment There are two projects between which the company will have decision option to accept or drop the proposal. The method of project evaluation would be based on discounting cash flows (DCFs) and thereafter determining the Net Present value (NPV) of each of the proposed project. The project proposal with the positive and highest NPV would be acceptable for investment. If the project has a positive NPV suggests that such a project is generating more cash than is required to service the debt and to provide the appropriate returns to...

Words: 1789 - Pages: 8

Free Essay

New Heritage Doll Compant

...4212 SEPTEMBER 15, 2010 TIMOTHY LUEHRMAN HEIDE ABELLI New Heritage Doll Company: Capital Budgeting In mid-September of 2010, Emily Harris, vice president of New Heritage Doll Company’s production division, was weighing project proposals for the company’s upcoming capital budgeting meetings in October. Two proposals stood out based on their potential to strengthen the division’s innovative product lines and drive future growth. However, due to constraints on financial and managerial resources, Harris knew it was possible that the firm’s capital budgeting committee would decline to approve both projects. She also knew that New Heritage’s licensing and retail divisions would promote compelling projects of their own. Consequently, Harris had to be prepared to recommend one of her projects over the other. The Doll Industry Revenues in the U.S. toy and game industry totaled $42 billion in 2008 and were projected to increase by 4.6% per year to $52.5 billion by 2013. The market was divided into two broad segments: video games (48%) and traditional toys and games (52%). The second segment was further divided into infant/preschool toys (14.5%), dolls (14.1%), outdoor & sports toys (12.3%), and other toys & games (59.1%) including arts and crafts, plush toys, action figures, vehicles, and youth electronics. The U.S. market for toys and games was dominated by large global enterprises that enjoyed economies of scale in design, production, and distribution. Revenues...

Words: 4264 - Pages: 18

Free Essay

Is-It Strategy

...INSTITUTE OF ACCOUNTANCY ARUSHA IN COLLABORATION WITH COVENTRY UNIVERSITY (UK) Module Name: IS/IT STRATEGY IS/IT Strategy Use at Ngorongoro Conservation Area Authority-Tanzania By: MAGANGA, MOHAMED George (MBA-ITM/0179/T.2013) Email:mohamedmaganga@hotmail.com JAN 2014 Coursework cover sheet – be sure to keep a copy of all work submitted * Submit via the coursework at Room No. 20 Administration Building * Section A - To be completed by the student – PLEASE PRINT CLEARLY Family Name(s) MAGANGA | Module Code ARUM40EKM | First name(s) Mohamed George | | IAA Student Registration Number MBA -ITM/0179/T.2013 | | LecturersDr.Titus Tossy and MS Joy Joseph | Module TitleIS/IT STRATEGY | Due date:10th January 2014 | Assignment No. / TitleIS /IT USE AT NCAA | Extensions & late submissions allowed:No | Estimated Time (hrs) | Assignment type:Individual | % of Module Mark50 | Hand out date: 10th January 2014 | Penalties: Marks will be reduced by 10% of the original mark for every week late. No work will be accepted that is more than two weeks | Declaration: I/we the undersigned confirm that I/we have read and agree to abide by the Coventry University and Institute of Accountancy Arusha regulations on plagiarism and cheating. I/we confirm that this piece of work is my/our own. I/we consent to appropriate storage of our work for checking to ensure that there is no plagiarism/ academic...

Words: 4360 - Pages: 18

Free Essay

Traditional Knowledge

...Asia-Pacific Database on Intangible Cultural Heritage (ICH) by Asia-Pacific Cultural Centre for UNESCO (ACCU) Sub-Regional Experts Meeting in Asia on Intangible Cultural Heritage: Safeguarding and Inventory-Making Methodologies (Bangkok, Thailand, 13-16 December 2005) TRADITIONAL KNOWLEDGE DIGITAL LIBRARY V.K. GUPTA, National Institute of Science Communication And Information Resources (NISCAIR) Council of Scientific and Industrial Research (CSIR), INDIA CONTENTS I. INTRODUCTION II. PROBLEM DIMENSIONS IN THE INDIAN SCENARIO: SCALE OF MISAPPROPRIATION OF DISCLOSED TK III. HORIZONTAL INTEGRATION INTO IPO PRIOR ART SEARCH SYSTEMS IV. CURRENT STATUS OF TKDL V. TKDL: TOOL FOR ACTIVE RESEARCH VI. STRATEGY FOR PREVENTING ABUSE AND MISAPPROPRIATION OF TKDL VII. REGIONAL INITIATIVES VIII. CONCLUSIONS ANNEX: I. II. III. IV. FORMULATION TRANSCRIBED FROM ANCIENT AYURVEDIC TEXT FORMULATION TRANSCRIBED FROM ANCIENT UNANI TEXT ACCESS AGREEMENT OVERVIEW OF INDIAN SYSTEMS OF MEDICINE Asia-Pacific Database on Intangible Cultural Heritage (ICH) by Asia-Pacific Cultural Centre for UNESCO (ACCU) I INTRODUCTION 1. The grant of wrong patents linked to traditional medicines, which is either based on what is already a part of the traditional knowledge of the developing world, or a minor variation thereof, has been causing a great concern to the developing world. The origin of Traditional Knowledge Digital Library (TKDL) goes back to the legal battle waged by Council of Scientific...

Words: 3886 - Pages: 16

Premium Essay

Gffg

...quarter. Finally, it guides you through the calculation of NPV and other investment criteria we discuss in class. Although the case is from a privately-owned company in the US, it serves as an illustrative example on how we compute NPV, IRR, payback period, and profitability index in practice. This procedure could be applied (with appropriate adjustments) to other investment decision making by other forms of organizations, including households, publicly-traded companies, not-for-profit organizations, or governments, both in the US and elsewhere. Instruction 1. Read “New Heritage Doll Company: Capital Budgeting” case. The case can be purchased from Harvard Business School Press at https://cb.hbsp.harvard.edu/cbmp/access/19276442 You need to register on the site to create a user name if you do not already have one. After you register, you can get to the coursepack at any time by doing the following: 1. Visit hbsp.harvard.edu and log in. 2. Click “My Coursepacks”, and then click “Finance B”. 2. Excel file consisting of spreadsheets for Exhibits from the case is also available for download. 3. You should try to think about how to get the answer for each question below before diving to the hints provided in the study guide. 4. The study guide is mainly numerical financial analysis and do not contain all of the analysis you need in order to solve the case. In other words, going through...

Words: 1522 - Pages: 7

Free Essay

Asdasd

...additional research and reflections as an instrument for clarifying, defining and augmenting the author’s understanding of the major issues addressed by the proposal. The scope of the study embraces a solution that will lead the restoration of the Basilica to realities and treat the problems involving its reestablishment. Being a national heritage and considered to be one of the first Roman Catholic churches in the Philippines, it is our objective to restore a historical edifice and preserve its cultural legacy and customs. On October 15, 2013, a 7.2 magnitude earthquake shook Bohol at approximately 8:00 in the morning. It caused millions of worth of casualties, hundreds of families devastated, destroyed numerous properties and damaged many historical landmarks and churches, including the Basilica de Sto. Nino. The earthquake crushed most of the belfry and façade; walls and frescoes are cracked, leaving the church in verge of total wreckage. To prevent an entire loss, propositions involving the repair and rebuilding of the damaged areas are to be provided as well as redesigning of the structure’s stability will furnish its constancy to be able to withstand future disastrous occurrences. Our team is focused on analyzing the Basilica’s present condition, what steps to take and plans to make in order to accomplish the goal of this proposal. The purpose of this paper is to inform and remind our readers that we should pay attention and value the elements and components that makes up our...

Words: 10393 - Pages: 42

Free Essay

Performance Appraisal

...Management. We have done our report on Performance Appraisal (Promotion & Transfer) system of CID-Bangladesh Police. It was a pleasure to work and analyze on matters related to the performance appraisal occurring a real work place. This paper has provided us an opportunity to relate our theoretical knowledge with the outside world and gave us practical knowledge of the practices of performance appraisal and many roles played by managers. Here, we are submitting you our final report. We have included the overview of the organization, Conceptual framework of CID- Bangladesh Police, problems with current appraisal system, transfer and promotion practices, transfer and promotion policies, reasons of violations of policies, remedies and recommendations on the current transfer and promotion system. In addition, we would like to say that, it was a great experience working on CID- Bangladesh Police. We have given our best to fulfill your expectation on the quality and the completion of the report within the specified time. Your valuable instructions helped me a lot while preparing the report. Furthermore, I have tried to cover all the instructions you have given me. We believe, we have met all the instructions properly and you will be pleased with our work. Thank you....

Words: 2179 - Pages: 9

Free Essay

Report

...RESEARCH PROPOSAL Module: Research Methodology Module Leader: Malcolm Bennison Program: MSc (ITM) Submitted by: Student ID: Table of Contents Working Title……………………………………………………………………………………..3 Introduction………………………………………………………………………………………..3 Background of the Study………………………………………………………………...……3 Purpose of the Study…………………………………………………………………………..3 Rationale for the Topic………………………………………………………………………..4 Statement of the Problem……………………………………………………………………..4 Research Objectives…………………………………………………………………………...5 Research Questions……………………………………………………………………………5 Literature Review…………………………………………………………………………………6 Cultural Tourism………………………………………………………………………………6 The Importance of Cultural Tourism………………………………………………………….7 Tourism Development………………………………………………………………………...7 Case Study: Natural History Museum………………………………………………………...8 Economic Impact……………………………………………………………………………...8 Employees and Services………………………………………………………………………9 Tourists’ Behavior…………………………………………………………………………...9 The NHM as Visitor Attraction……………………………………………………………….9 Research Methodology…………………………………………………………………………..10 Research Philosophy………………………………………………………………………….10 Research Approach and Design………………………………………………………………11 Data Collection…………………………………………………………………………….....11 Data Analysis Method………………………………………………………………………..12 Sampling Technique………………………………………………………………………….12 Ethical Consideration……………………………………………………………………………...

Words: 3080 - Pages: 13

Premium Essay

Environemnt

...Inter-jurisdictional Coordination of EA: Challenges and opportunities arising from differences among provincial and territorial assessment requirements and processes Report for the Environmental Planning and Assessment Caucus, Canadian Environmental Network East Coast Environmental Law Association Deborah Carver, Robert Gibson, Jessie Irving, Hilary Kennan, Erin Burbidge November 20, 2010 ______________________________________________________________________ Summary.........................................................................................................................................3 I Inter-jurisdictional coordination of EA........................................................................... 4 II Basic principles for upwards harmonization through inter-jurisdictional EA coordination.............................................................................................................................. 6 III Immediate and underlying concerns driving attention to improved inter-jurisdictional coordination.............................................................................................................................. 8 IV Provincial EA regime differences as a challenge and an opportunity for coordination and harmonization ..................................................................................................................11 V Key characteristics of the provincial and territorial EA regimes ..................................13...

Words: 50661 - Pages: 203