...worldwide. The senior vice president of corporate development Dennis Shaughnessy was to present a joint venture proposal to the board of directors to invest up to two million dollars in a small family owned company called ALPES that was the producer of state-of-the-art specific pathogen free (SFP) eggs in Mexico which can further help the company to achieve its long term strategic growth and also grow its existing businesses. Key Issue 2.1 PESTEL Political. Since the North American Free Trade Agreement allowed the free flow of goods and services in North America; it would have a positive effect on CRL and ALPES because the effect of political restriction can increase Mexico’s production in order to supply the U.S. and Canada. Meanwhile, ALPES will have more opportunity to gain more resources in other countries and also meet the increasing demand by increasing production. Economic. The joint venture is located in Mexico, where there is an uncertain and unstable market. The risk may influence the decision of the joint venture. In addition, although the industry has an excess demand of SPF eggs in the market, it would be affected by the economic slowdown. Social. Due to the industry mainly supporting research and development of pharmaceuticals and vaccines, there is a problem with pathogens carried by unvaccinated poultry because contaminated poultry increases human health risk (APLES S.A.,...
Words: 3850 - Pages: 16
...Key Issues The ALPES S.A. case deals with Charles River Laboratories (CRL) and their consideration of a joint venture proposal with an animal vaccine company in Mexico. The senior V.P. is preparing to present the proposal of a $2 million investment for the firm. The CEO, Jim Foster, is concerned with the associated risks that CRL would be undertaking if they accept this venture. Key issues of concern are; the partnership with a relatively small, family run business; having operations in Mexico, which could pose difficulties; maintaining CRL’s focus on U.S. expansion; and the proposed partner’s lack of funds to invest, which will leave CRL to bear the entire cost of the venture. Internal Analysis: Business Strategy Diamond 1. Arenas Charles River Laboratories (CRL) is currently the market leader for the commercial supply and production of global laboratory animal models used in the development and testing of new pharmaceuticals, as well as discovery research. The most recent product development is that of SPF eggs, which are used in the development of human vaccines that have not yet been converted over to the newer production technology. 2. Vehicles Charles River Laboratories has two different options at this time for vehicles that will enable them to enter new arenas. These consist of entering into a joint venture, or other type of agreement, with ALPES, or making use of the SPAFAS franchises. Although the initial intention to purchase the existing franchises...
Words: 2699 - Pages: 11
...Written case analysis Kanzen Berhad: A Proposed Joint Venture With Pacific Dunlop Limited Problem definition Statement of problem Kanzen Berhad (KB) is a Malaysian based company whose problem is that they want to increase their operating profits, but are not sure how to do it. They are thinking about doing this by reducing their costs and increasing their sales figures, and doing this quickly. They don’t believe they can reduce their costs on their own, and need a way to gain knowledge and technology in order manufacture products more efficiently, and break into additional markets. Expansion The first decision they have to make is whether or not to expand the company. We take it as given that KB has decided to expand but there are several barriers to consider before they can proceed with an expansion plan. The company can choose between expanding within any of the industries they are already in, or expanding by diversifying even more and entering new industries. KB is looking to expand in the bedding industry in this case, so this is what we will focus on. Barriers of expanding the bedding industry These barriers are: 1. A lack of manufacturing technology and efficiency knowledge. 2. A lack of marketing skills to break into new markets, especially with new products. 3. Possible internal conflicts of interests 4. Limitation in markets Having world-class efficiency would provide them with the means to expand into more markets and increase productivity. This...
Words: 5217 - Pages: 21
...Our entity, Custom Snowboards Inc., needs to acquire funds for its intended expansion into the European market due to the viability of the market. Hence, the entity puts forth the viability of the proposed investment and its ability to service the said funds if presented with the adequate funding from your bank. Our entity regards entry into the European market as high priority project due to the potential of the market to grow exponentially. Summary of issues • The entity shows a constant decline in profits for three consecutive periods from the beginning of the financial year 12 to the period through the financial year 14. This might be an indication to the chief financial officer that the entity’s profitability level is on the decline. Thus, the officer might be forced to reject the plea for the loan to avid default from the entity, as it might be unable to complete repayment of the loan from its residual funds after the deduction of operational costs. • In addition, there was a significant increase in general costs and administration expenses within the organization. This might be accrued from the increase in costs of doing business. However, from another perspective, administration costs might also be accrued from mismanagement of the organizational resources. Analysis of data and Errors Analyses of financial ratios in terms of loan repayment include: • Debt Ratio = Total Debt/Total Assets $750,000/$1,781,546 = ...
Words: 2172 - Pages: 9
...Q.1 What are the unique advantages and disadvantages of International Joint Ventures? Try to relate to the case when you answer this question. The case illustrates the possibility of a Joint Venture between Nora, a leader in telecom equipments in Malaysia and Sakari, a Finnish Conglomerate that deals in the manufacturing of cellular phone sets and switching systems. Joint Ventures between local players in developing countries and foreign companies have become an apt means for both managements for satisfying their business needs and objectives. Local partners bring local expertise of the target market, familiarity with local governance and government regulations, understanding of the regional work ethics and culture, while, the foreign players get the latest technological know-how, advanced operational frameworks and access to export markets to the table. It can be seen as a symbiotic tryst between two mutually co dependant parties. In the light of the aforementioned case, some of the unique advantages and disadvantages of an International Joint Venture are as follows: Advantages of an International Joint Venture: y y y y y y Access to new markets and a wider distribution capacity: As shown in the case, Sakari was interested in enhancing its global market share by means of a Joint Venture. A Joint Venture allowed it to foray into lesser known foreign markets with the help of an established local player. This allowed the Finnish company to gain the much needed expertise and...
Words: 2451 - Pages: 10
...GUIDEBOOK FOR FACILITATING SMALL BUSINESS TEAM ARRANGEMENTS SEPTEM BER 2007 DEPARTMENT OF DEFENSE OFFICE OF SMALL BUSINESS PROGRAMS Contents Preface .......................................................................................................... v Chapter 1 Introduction................................................................................... 1 GROWTH OF TEAMING .................................................................................................. 1 GROWTH OF CONTRACT CONSOLIDATION ....................................................................... 1 PURPOSE .................................................................................................................... 2 STRUCTURE OF THIS GUIDEBOOK .................................................................................. 2 Chapter 2 Challenges of Consolidation and Bundling to Small Business............................................................................................... 4 CONSOLIDATION ........................................................................................................... 4 BUNDLING .................................................................................................................... 5 Diversity, Size, and Specialized Nature of the Requirement................................. 6 Aggregate Dollar Value ........................................................................................ 6 Geographical Dispersion of the...
Words: 29004 - Pages: 117
...months. CMOT has recently partnered with Toiyabe Resort Company for the development of a year-round ski resort in the Tahoe area, and have invested $5,300,000 in the venture. CMOT and Toiyabe plan to begin construction of the resort in 1992. CMOT also plans to invest $8,200,000 in their two ski resorts (Lake Ridge and Crystal Meadows) in 1992. During 1991, CMOT saw very positive increases to net income and shareholder’s equity. This year was exceptional in terms of operations, bringing CMOT the most skier days in the company’s history. CMOT is planning some significant capital investments in 1992. An analysis of their income statements, balance sheets, and cash flow are helpful in guiding the company’s proposed investments. What does the analysis of cash flows reveal about CMOT that was not evident from analysis of the income statements and balance sheets? The income statement for CMOT for 1991 has the company showing a net income of $1,418,000. This figure is $747,000 higher than the previous year at $671,000 and more than doubles CMOT’s net income from 1990 to 1991. CMOT’s balance sheet for 1991 indicates that the company had $7,585,000 in retained earnings, which is $1,306,000 higher than 1990’s $6,279,000. Both provide bottom lines that make the CMOT appear to be profitable and in a growth cycle. An analysis of cash flows shows that CMOT has significant cash outflows for capital investments in PP&E, namely the purchase of new snow making equipment and other improvements...
Words: 770 - Pages: 4
...For Office Use: Grade WrittenAnalysis and Communication Individual Assignment No 1 Case Analysis Report On ‘The Structure of a Business Decision’ Submitted by Name : EXECUTIVE SUMMARY Mr. Nakamura recently takes over charges of his family business of lacquer ware. His brand “Chrysanthemum” is the top selling brand of only Japan. He wants to expand his business across the globe. But Japanese government does not allow direct investment foreign. In the way two US Company approaches him for collaboration. First has fixed demand of 400000, with 5% more margin but no brand recognition of “Chrysanthemum”. Second has estimate demand of 600000 with brand recognition and also promotion cost for two years beard by him but profit is not provided for that period. It is advised to collaborate with second as promotion is beard by him initially. Word Count: 109 SITUATION ANALYSIS Mr. Nakamura the third generation of family had became the head of his family business of lacquer ware in Japan. It is the bestselling brand in Japan with demand over 5,00,000. But Nakamura has no business abroad. Recently two companies had approach Nakamura for his business expansion in United States. One is “Rose & Crown” and other is “ Semmelback, Semmelbach and Whittacker, Chicago”. Both has different proposal to Nakamura. When he became the head of business he makes certain changes in company. He developed modern ways of production with...
Words: 900 - Pages: 4
..."As manager’s adviser to a possible new firm, set out the entrepreneurial new business lifecycle to help the business owners develop a strategic plan, also the options and challenges they will face in the growth and development phase ,and later on , when pursuing a “going global’ focus." At the beginning, what is Entrepreneurship? Entrepreneurship is strategic thinking and risk-taking behavior that results in the creation of new opportunities. The Entrepreneurs are either; * A classic entrepreneur is someone willing to pursue opportunities in situations others view as problems or threats. * A serial entrepreneur starts and runs businesses and nonprofits over and over again, moving from one interest and opportunity to the next. * A first-mover advantage comes from being first to exploit a niche or enter a market. What many people think is that entrepreneurial ventures and small businesses are one and the same, but they aren't. Entrepreneurial ventures are organizations that pursue opportunities, are characterized by innovative practice, and have growth and profitability as their main goals. While, Small Businesses are organizations that are independently owned, and financed; has fewer than 100 employees; doesn't necessarily engage in any new or innovative practices; and have relatively little impact on its industry.(p292) Attitude & Personal Interests of Entrepreneurs * Internal locus of control. * High energy level * High...
Words: 1293 - Pages: 6
...Subject : Entrepreneurship and Business Planning (EntrepHRM) Definition of Entrepreneurship * The art of science of innovation and risk-taking for profit in business. * The practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. * It came from the root word “entrepreneur” * French word means “entreprendre” which means undertake Common Themes in Definitions of Entrepreneurship * Individual * Innovation * Organization Creation * Creating Value * Profit or not-to-profit * Growth * Uniqueness * Process Misconceptions about Entrepreneurship * Successful entrepreneurship needs only a great idea * Entrepreneurship is easy * Entrepreneurship is a risky gamble * Entrepreneurship is found only in small businesses * Entrepreneurial ventures and small businesses are the same thing. Men behind Entrepreneurship Eighteenth Century * Early 1700s – Richard Cantillon, coined the term entrepreneur who was then used to describe a “go-between”or a “between-taker” * Late 1700s – the risk bearing concept entrepreneur was expanded to include planning, supervising, organizing, and owning the factors of production. Nineteeth Century Early part of the century – Jean Baptiste Say proposed the difference between the profits of entrepreneurship from the profits of capital ownership. Late part of the century – distinction was made between those who supplied funds and earned interest...
Words: 709 - Pages: 3
...4 Performance Measurement 4 Conclusion 4 3. NEEDS ANALYSIS 5 Overview 5 Market Analysis 5 Situation Analysis 5 Competitor Analysis 5 Environmental Analysis 5 Output Analysis 5 Conclusion 6 4. CONSULTATION 7 5. INTELLECTUAL PROPERTY 8 Assignment of Intellectual Property 8 New Intellectual Property 8 6. COST/BENEFIT ANALYSIS 9 Budget 9 Benefits 9 Insurance 9 Taxation 9 Competitive Neutrality (Applicable to activities delivered within Australia only) 9 Staffing Requirements and Costs 10 New Staff 10 Staffing located at Third Party 10 7. DUE DILIGENCE ASSESSMENT (ONLY IF THIRD PARTY INVOLVED) 11 Description of third party 11 Location of Third Party 11 Governance of Third Party 12 Financial Viability and Sustainability 12 Academic Experience and Capability 12 Conclusion 12 8. RISK ASSESSMENT (incl corruption assessment) 13 Conclusions 13 9. GOVERNANCE, MANAGEMENT AND LEGAL 14 Legal structure 14 Compliance Obligations 14 Management Plan 14 Audit of Activity 14 Conclusions 14 11. TIMELINES AND REPORTING 15 1. EXECUTIVE SUMMARY In this section, provide a concise overview of what you are proposing and why it should be supported. This should address the following: Background ■ how did this proposal came about? ■ what options did you consider? ■ why was this option chosen? Strategic Alignment ■ Does the activity support...
Words: 2853 - Pages: 12
...the development and testing of new pharmaceuticals. The company’s strategic growth objective was to grow its existing business by between 12% and 15% annually and its entire business by 20%. This plan left a strategic growth gap of 5% to 8% each year, resulting in CRL’s pursuit of growth opportunities in the form of joint ventures, technology licensing and strategic partnerships. Key Issues Primary: Should CRL invest up to $2 million to create a state of the art specific pathogen free (SPF) egg farm? In order for Dennis to win over the Board of Directors, he must convince Jim Foster (CEO) of CRL. Foster views this proposal as a potential distraction for Specific Antigen Free Avian Services (SPAFAS), which continues to grow in the United States. Given the number of companies involved, different geographic locations and capital requirements, CRL must carefully decide whether this investment will fill their strategic gap growth. Secondary: Would IDISA be reliable partners in a joint venture The complex organizational structure of Group IDISA, is made up of five legally independent companies all owned by the same family. When considering a joint venture with ALPES, CRL has concerns regarding the number of transactions between the companies and the overall transparency of the IDISA. This family owned company holds a board meeting once a year, and has no strategic plans, operating budgets, meeting minutes or formal corporate documents that are routine for U.S. companies. ...
Words: 2057 - Pages: 9
...4 Performance Measurement 4 Conclusion 4 3. NEEDS ANALYSIS 5 Overview 5 Market Analysis 5 Situation Analysis 5 Competitor Analysis 5 Environmental Analysis 5 Output Analysis 5 Conclusion 6 4. CONSULTATION 7 5. INTELLECTUAL PROPERTY 8 Assignment of Intellectual Property 8 New Intellectual Property 8 6. COST/BENEFIT ANALYSIS 9 Budget 9 Benefits 9 Insurance 9 Taxation 9 Competitive Neutrality (Applicable to activities delivered within Australia only) 9 Staffing Requirements and Costs 10 New Staff 10 Staffing located at Third Party 10 7. DUE DILIGENCE ASSESSMENT (ONLY IF THIRD PARTY INVOLVED) 11 Description of third party 11 Location of Third Party 11 Governance of Third Party 12 Financial Viability and Sustainability 12 Academic Experience and Capability 12 Conclusion 12 8. RISK ASSESSMENT (incl corruption assessment) 13 Conclusions 13 9. GOVERNANCE, MANAGEMENT AND LEGAL 14 Legal structure 14 Compliance Obligations 14 Management Plan 14 Audit of Activity 14 Conclusions 14 11. TIMELINES AND REPORTING 15 1. EXECUTIVE SUMMARY In this section, provide a concise overview of what you are proposing and why it should be supported. This should address the following: Background ■ how did this proposal came about? ■ what options did you consider? ■ why was this option chosen? Strategic Alignment ■ Does the activity support...
Words: 2853 - Pages: 12
...has missed the opportunities that this new technology offered. Their idea involved living creatures on Mars, a really cool Web site, and lots of chocolate chip cookies for the company party. The founders of SpiffyTerm, Inc. had received a term sheet from, Wolf C. Flow, a contact partner at a venture capital firm called Vulture Ventures However, the founders found that the term sheet was so incomprehensible that it could have been written in a completely different language. So, they decided to use the day to understand the term sheet and determine what valuation and other terms they should be bargaining for. The founders of SpiffyTerm, Inc. believed that they needed to raise $4 million at this time and $2 million after two years. They had currently allocated 5 million shares to themselves, and wanted to put aside an option pool of 1.5 million shares for future hires. Wolf C. Flow offered to invest $4 million at a price of $1 per share. The founders also believed that there would be an IPO after 4 years at a valuation of about $80 million. In addition, the founders knew there were risks in the venture, thus they would apply a discount rate of 45%. According to the Vulture Venture, the implicit valuation for the firm is about $10,500,000. The investors obtained their valuation by adding the 5 million shares the founders have to the 1.5 million shares for future hires, plus the 4 million additional shares created by the investment and...
Words: 1014 - Pages: 5
...Contents Introduction 4 Executive Overview 4 Customer Relationship Management and Data Warehousing at a Glance 5 Vendor Selection Criteria: 5 Comparative Analysis: 7 Financial Analysis for the proposed CRM project: 9 Recommendations : 11 Conclusion: 12 Bibliography : 13 Introduction This business case distinguishes three prominent software vendors that propose three different solutions that contribute to Bank of central Queensland (BCQ) progress.BCQ is a financial institution offering core banking (commercial/retail) services, equipment finance, wealth management and insurance. BCQ uses its unique concept of the Owner-Managed Branch (OMB), which is a partnership between the Bank of central Queensland (franchisor) and experienced bank managers (franchisees) to provide banking services. The bank operates a network of over 280 branches Australia-wide. With the growing demands for effectiveness and efficiency, BCQ is faced with a robust necessity to upgrade its technology and business processes in order to stay competitive. CRM/ data warehouse solution is one of the preferred option that the bank is desperate to implement to outshine in their service and maintain its dominant customer base while using it to unveil campaigns targeting new customers. The case business has the detail description about the three CRM proposals offered by different companies. Executive Overview The way companies use and pay for customer relationship management (CRM)...
Words: 2618 - Pages: 11
