...Rocky Mountain Advanced Genome Case Study 2: Rocky Mountain Advanced Genome This paper provides an objective valuation of Rocky Mountain Advanced Genome (RMAG) to be adopted by Big Sur regarding the purchase of a 90% equity stake for $46 million. Forecast Horizon: The forecast horizon was lengthened to 15 years, as RMAG is a young, “highly promising, high risk” firm, only established 15 months prior, it should reach maturity in 2010 as sales, expenses and free cash flows stabilise (Fig.1). RMAG exhibits characteristics of a high growth firm with no dividends, high risk, high CAPEX expenditures and no leverage. Furthermore, it would be inadequate to adopt the forecast horizon dictated by RMAG and Big Sur of 10 years as cash flows only breakeven in Year 8 (Fig.2). Ohlson & Zhang (1999) affirmed that “Casual observation suggests that the horizon rarely exceeds 15 years” yet a planning period of 15 years is appropriate as RMAG has heavy R&D expenses that generate products with lengthy development stages and greater time until profit realisation. Cash flow forecasts provided by RMAG management and Big Sur analysts for the next ten years were analysed and accounts over the 1995 to 2005 were averaged as, “cash flows can be biased as a result of managers being either too conservative or too optimistic” (Titman et al. 2011). RMAG’s forecast was biased upwards whilst Big Sur’s forecast was relatively conservative. Hence, a hybrid of the two forecasts was adopted to negate bias...
Words: 260 - Pages: 2
...Written Analysis and Communication Rocky Mountain Mutual: Promoting Fun or Fitness? Submitted to: Submitted by: Prof. Manaswini Acharya Roll No. : 15PGDM005 Section- A Date of Submission: 10th July 2015 ` MEMORANDUM From : Joseph Mirola, Claims Manager To : Mr. Zachary Evans, Vice President Operations Date : 10th July 2015 Subject : Benefits of Fitness Center This report includes a detailed analysis of the situation at hand and the different options available. The major criteria used to evaluate the case are Employee benefits and Cost to Company. After much analysis my recommendation would be to utilize the space used for fitness center in the optimized way wherein half of the space can be used for Corporate Information Systems and the other half can be used for fitness center. Executive Summary Rocky Mountain Mutual is a growing insurance company which had built a new headquarters complex in remote area in Utah. The complex was included with the fitness center featuring an indoor walking/running track, a swimming pool and an exercise room. As per the reports of the last two years, the medical costs and the absenteeism rates of 35 percent of employees who used the fitness center has reduced. Zachary Evans, the Vice President of Operations, who is profit centric, wanted the fitness center to shut down as it is expensive to maintain and run. Joe Mirola...
Words: 1284 - Pages: 6
...door with the aroma from the pumpkin pie, pot roast, and cheesy mashed potatoes being made in the kitchen. Then, the family across the street decorating their 10 feet Christmas tree through the window with ornaments as colorful as the rainbow and lights as bright as the sun. With that being said, you would see Christmas lights on each house and everyone in the neighborhood singing Christmas carols. You wouldn’t even be able to drive your lifted 2013 Chevrolet due to how much snow would be on the roads. The only way you could see people getting around are the teenagers on their bright blue or bright pink snowmobiles. If you were to also go down to the Southern Rocky Mountains, you would see kids of all ages and adults snowboarding or skiing. Swishing from side to side and doing tricks like no other down this ginormous mountain. Many people don’t see the joy in the freezing cold, but I choose thirty degrees over ninety degrees any...
Words: 331 - Pages: 2
...Rocky Mountain Chocolate Factory Inc.— Preparing Financial Statements Teaching Notes: This case introduces students to the preparation of financial statements. Students are required, first, to consider the industry in which Rocky Mountain Chocolate Factory operates and determine the kinds of line items that would appear on the company’s balance sheet. Thus, the case encourages students to consider the broader business environment in which the company operates. The case gets students to use a spreadsheet to capture a series of chronological transactions. Students are required to record journal entries for both transactions and accounting adjustments. Students use the information from the spreadsheet to prepare a balance sheet and an income statement. The case provides guidance on how a spreadsheet should be set up so that students get immediate feedback about their progress. The case includes a suggested spreadsheet and recommends that income statement transactions NOT be posted directly to Retained earnings. The spreadsheet has subtotals for the unadjusted and pre- and post-closing trial balances. Facility with spreadsheets is a must for business professionals. Acquiring those skills takes time and practice. Thus, students ought to be discouraged, in our opinion, from photocopying the casebook spreadsheet and writing in the journal entries by hand in lieu of using a computerized spreadsheet. We use this case to reinforce the difference between cash-basis and accrual accounting...
Words: 1943 - Pages: 8
...#3 Danielle Liberatoscioli The article I have chosen for this assignment is titled “Climate change accelerating death of Western forests” by Trevor Hughes. This article is about how the aspen and pine forests of the Rocky Mountains are dying off at a fast rate due to climate change. Wildfires and drought are two of the main causes as to why the forests are depleting. The main underlying issue is climate change. The article goes into talking about how if the emissions of heat-trapping gases continue at the rate they are at, the area suitable for Rocky Mountains lodge pole pine will decline drastically. The National forests play a key role in the economy for Colorado. National parks in the states of Colorado, Montana and Wyoming host around 11 million visitors a year. This generates $1 billion in tourist spending. With the land changing, due to the climate changes, they landscape could significantly change. This could result in tourist and visitors no longer wanting to visit the areas. The article talks about how the trees grow in different areas depending on the seasons. If climate change alters the cold in the winter and the hotness of the summers, the trees will no longer continue to grow in those spots. Stephen Saunders, President of the Rocky Mountain Climate Organization said, “If we continue changing the climate, we may bring about much more fundamental disruption to these treasured national landscapes. I believe this article ties in directly with what we are learning...
Words: 416 - Pages: 2
...Many people did not believe industry was developed enough and this idea was plausible. The doubts stemmed from the obstacles of finance, natural barriers such as the Rocky Mountains, the Sierra Mountains and the Mississippi River, and sheer impracticability. As years passed, the mass migration to the West especially due to the Gold Rush made the requisite for a transcontinental railroad crucial. “The project for construction of a great Railroad through the United States of America, connecting the Atlantic with the Pacific Ocean, has been in agitation for over fifteen years.” (Judah) In 1862 and 1864, the Pacific Railway Acts were passed which granted the railroad companies twelve million acres of land and twenty seven million dollars from the government to support the construction of the railroad. Railroads were not considered a government service, so they had to be built privately by companies. But the government supplied...
Words: 1730 - Pages: 7
...Wyoming’s history occurred from 1262 to 1281. The droughts of the 1930’s and 1950’s, which have been used as benchmarks for all other droughts in the United States in recent times (Woodhouse et al. 2002), are ranked 149th and 28th respectively in comparison (Gray et al. 2004). The five top ranking droughts for 10, 15, and 20 year periods are all prior to the 1800’s, with the four driest single years being 1263, 1274, 1278, and 1280 (Gray et al. 2004). This indicates a change in precipitation patterns in the Big Horn Basin area of Wyoming since the 18th century, as all recent droughts have been mild when compared to those of Wyoming’s past. Droughts in Wyoming’s future are unpredictable and uncertain; however, Richard Guldin of the Rocky Mountain Forest and Range Experiment Station in Fort Collins, Colorado, has made some predictions for the water situation in the United States as far ahead as 2040. According to Guldin, 526,600 million gallons of freshwater will be withdrawn per day in the year 2040 versus the 385,200 million gallons...
Words: 1010 - Pages: 5
...Rocky Mountain Mutual Utah Date: June 19, 2015 To Zachery Evans Vice President, Operations From Joseph Mirola Claims Manager Memo: This report entails discussion on the viability of the fitness centre. Cost vs benefits have been studied and ways to decrease cost and increase revenue have been looked at. The options have been evaluated considering the need for space and the high cost to maintain the place. Based on this analysis it is recommended to open the fitness centre to family members of employees at a membership fee which would increase enough revenue to lease a facility to accommodate the Information Systems Department Executive Summary Viability of the Fitness Centre at Rocky Mountain is discussed. Investments and maintenance cost is very high. They are not justified by the usage of the facility. Space is needed to accommodate Information Systems Department and management is contemplating closing the fitness centre. This is would lead to decreased morale among regulars to the fitness centre. Solutions have been discussed and the most feasible alternative is: 1. Formally introduce the Wellness Program 2. Make it open to families of employees at a membership fee 3. Use funds generated in the process to lease a place for the Information Systems Department Upon evaluation this option looks viable and should be implemented. Situation Analysis Rocky Mountain Mutual, an insurance company built its head quarters in Utah, given...
Words: 1270 - Pages: 6
...In the 19th century no railroad went further west than St. Joseph on the Missouri border. Several people advocated for the construction of a transcontinental railroad to increase trade and unify the country. Congress rejected the idea several times because of different obstacles. Finally, Theodore Judah drafted a plan the solved two of the problems with previous plans. He explained how to finance the railroad and found a route through the mountains. Theodore Judah went west and began to build the first railroad tracks in California in 1854. He hoped to one day connect his railroad to a transcontinental railroad. The Sierra Nevada Mountains, however, remained a massive obstacle. Eventually, he found a route that could take the railroad through...
Words: 290 - Pages: 2
...pictures caught at Yellowstone. This park has an abundance of geysers, hot springs and also one Supervolcano. Supervolcanoes have the ability to kill billions of people and destroy a whole continent; the magma of this volcano can reach up to 1000 cubic miles away. Although it is not to fear now, civilians still may ask: what is a supervolcano, when did the last one erupt, and what would happen if one erupted today? A hotspot is developed above a mantle plume. A mantle plume is an area of warm, rushing mantle; only 35 of these exist in the entire world. The hotspot can produce magma that rises up to the rigid plates of the lithosphere, yet unable to break fully through, thus creating a supervolcano. Supervolcanoes form depressions, not a mountain like the composite volcanoes. When these supervolcanoes are growing, they merely look like a small hill or a bulge in the ground until ready to burst. The pressure underground keeps building up until it can no longer hold it in. "A super-eruption is the world's biggest bang", says Prof. Bill McGuire of the Benfield Greig Hazard Research Centre at the University of London. "It's a volcanic explosion big enough to dwarf all others and with a reach great enough to affect everyone on the planet." The modern man to this day has not witnessed a supervolcano explosion. The most recent supervolcano eruption did not occur at Yellowstone, but in Toba, Indonesia. This event occurred 74,000 years ago and had the potential to trigger another ice age...
Words: 692 - Pages: 3
...American Experience, "Transcontinental Railroad" is about the Transcontinental Railroad that was known as the engineering marvel in the 19th Century. This railroad opened up new economies in the West of America. Many conflicts occurred with the labor force, between Theodore Judah and Charles Crocker before the railroad was even built. The Transcontinental railroad caused many problems from it being built and people trying to help for their own purposes. In the end it changed the lives of the Chinese, Mormons, Plain American Indian Tribes and American forever. In the beginning Judah came up with a plan on how to build the railroad but Crocker took that over once he realized the contracts that Abraham Lincoln gave them to build from the East...
Words: 347 - Pages: 2
...Executive Summary rocky mountain is a three years old insurance company in suburban and remote area of utah. It has a fitness centre featuring an indoor walking running track and most of the employees visit this fitness center. The establishment cost for this center was around one million dollars and the rubbing cost as of now is also very high due to maintenance and the other services. Keeping this in view Zachary Evans the new VP, operations of the company plans to shut down the fitness center to cut the expenses of the company. On proper analysis of the situation I come to the conclusion that the fitness center should remain open and it should be made available to more number of people by encouraging them to join the center. Word Count: 99 Table of Contents Serial No. Contents Page No. 1 Situation Analysis 1 2 Problem Statement 1 3 Options 1 4 Criteria 2 5 Evaluations of options 2 6 Recommendations 3 7 Action Plan 3 Situational Analysis The fitness center of rocky mountain is in debate this year after the appointment of the new VP, operations Zachary Evans, However in view of joe Mirola fitness center is a necessary requirement of the company to increase the efficiency of the employees and to attract the new employees from nearby area to come to rocky mountain. Looking at previous two year trends the employees who use fitness center take 50% less leave as compared to other employees and...
Words: 813 - Pages: 4
...INTERNATIONAL MANAGEMENT INSTITUTE,NEW DELHI Assignment Written Analysis of Cases Rocky Mountain Mutual : Promoting Fun or Fitness? Submitted By : Sachin Watts 14PGDM046 Persuasive Memo on Fitness Center at Rocky Mountain Mutual To: Mr. Zachary Evans, Vice President of Operations From: Joseph Mirola JM Date: July 13,2014 Subject: Company Fitness Center makes a profit Thank you for allowing me to explain to you the benefits of having the company fitness center. Company reports indicate that the Fitness Center has led to an overall decrease in employee absenteeism, reduction in employee medical costs, and an increase in productivity. Employees who have taken advantage of the Fitness Center miss half the amount of work days than employees who do not use the fitness center. This claim can be substantiated by the data attached with the memo. Also the medical costs are affected in a huge way given below : • Frequent users (10% using 3 times a week): Average medical cost of $100 per year. • Average users (25% using once or twice a week): Average medical...
Words: 817 - Pages: 4
...Assignment 1 Written Analysis & Communication | Rocky Mountain Mutual: Promoting Fun Or Fitness? | Alok Kumar Nanda | In today’s date obesity and its health related issues have reached epidemic levels in USA. Every year close to 120,000 preventable deaths occur due to obesity. Also an obese person is likely to spend $1,497 more annually on health issues1. Obesity also acts as an initiator to other ailments related to heart, diabetes etc. This has an adverse effect on the insurance sector as the number of claims increase substantially leading to higher premiums and consequently large numbers of people are falling off from the radar of healthcare insurance. Rocky Mountain Mutual, our company, is one of the faster growing companies in the insurance sector and it is imperative that the management takes the problem of health and related issues head on. The best way to do this is to start from within the organization. Health has to be made a part of the work culture and seen as an important offering to the employees. Keeping all these facets in mind the fitness centre was built at the new headquarters in Utah. Many studies have tried to relate the effects of regular exercise and fitness to the productivity of people in workplaces. It has been found that exercises hold immediate benefits for affect and cognition in younger and older adults2. Regular exercises as a routine leads to the development of following cognitive abilities:- a. Improved Concentration b....
Words: 901 - Pages: 4
...Conservation is the appropriate use of land controlled by humans to ensure the elimination of potential waste of natural resources. Preservation is leaving land and the natural resources it has maintaining its natural state; protecting it from any harmful human manipulation. I believe humans can harvest forest resources in an environmentally friendly way. Although not left in its natural state managed to do away with misuse and make the most of the natural resources for future generations to benefit from. Watching the Bridger Teton video and soaking in the spellbinding and breath taking scenery of Yellowstone; I can clearly see where the debate can become heated. The beauty of Bridger Teton is one of a kind, and the idea it will one day be gone or in a state nowhere its current grander is a frightening notion. However, so is the energy crisis America will face in the coming years and generations to that will follow. If the lands of the Greater Yellowstone, will be used for their natural oil and gas resources this will entail the drilling, construction of roads and pipelines the possibility of maintaining its current state seems impossible. I am inclined to believe as stated in the Bridger Teton piece “I’m not against oil and gas exploration, per se, in Wyoming. I am against it in some of these areas that are unique.” If we can preserve “the heart” of Yellowstone and conserve additional lands in Wyoming it is possible to reap the benefits of these luscious lands. ...
Words: 290 - Pages: 2
