...Winter 2012 INTERNATIONAL SALES MEETING 25th – 26th October 2011 Operations Update. . Diadora Operations Priorities. Spring Summer 2012 Timelines Sales Forecasting Logistic Platform (HK) Spring Summer 2012 Production Schedule Brand Protection Program Quality Continuous Improvement Sourcing Fall Winter 2012 . Diadora Operations Priorities. Spring Summer 2012 Timelines Sales Forecasting Logistic Platform (HK) Spring Summer 2012 Production Schedule Brand Protection Program Quality Continuous Improvement Sourcing Fall Winter 2012 Sales Forecasting. Macro process, players and final goal Forecast Budget Forecast Budget Markets Sales Planning Vendors Deliveries in full on time Sales Forecasting. Macro process, players and final goal Forecast Budget Forecast Budget Sales Planning Vendors Deliveries in full on time Sales Forecasting. Macro process, players and final goal Forecast Budget Forecast Budget Markets Sales Planning Vendors Deliveries in full on time Sales Forecasting. Process in details Fall Winter 2012 & Spring Summer 2013 Line Plan, CADs, Proto Samples 1 3 Steps Sales Forecast Process 1st Sales Forecast SMS Order Capacity Plan Pre Costing Final Allocation Final Costing Minimum Check Drop 2 3 Photo Samples Arrival 2nd Sales Forecast Sales Meeting & SMS Arrival 3rd Sales Forecast Raw materials Purchasing Plan & Cut Off Schedule Sales Forecasting. Process in details...
Words: 1246 - Pages: 5
...Student Project Activity – Week 1 A. Week 1: Section 1.0 Executive Summary B. TCOs Addressed: TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget. C. Project Activity Overview – Scenario / Summary: You have been asked to create a budget proposal for one of these businesses: Papa Geo’s Restaurant, The Cutting Edge Landscaping, or Wireless World Electronics Retail Store. This week you will begin working on the proposal by drafting the Executive Summary. Use the Budget Proposal Template.docx. D. Deliverables: Save the first paragraph of Section 1.0 Executive Summary Draft as YourName_Project_WK1.docx and upload to the Week 1 Project Dropbox. E. Project Tasks: Task 1: | Download the Budget Proposal Template.docx from DocSharing. | Task 2: | Download the Course Project Description.docx. from DocSharing. | Task 3: | Review the three different business scenarios. | Task 4: | Select the business for which you will create a budget proposal. | Task 5: | Draft the first paragraph of the Section 1.0 Executive Summary. | Task 6: | Save the Draft and submit to the dropbox. | F. Grading Criteria | Description | Suggested Points | The business is briefly described in one paragraph. | 3 | The business description is in your own words. | 3 | The business description appears in the Executive Summary section...
Words: 2320 - Pages: 10
...into the civilian commercial aviation sector in direct competition with Airbus, McDonnell Douglas and Boeing. By 1971, having already invested $700 million in development costs, Lockheed was struggling with cash flow and sought $250 Million in federal loan guarantees, funding which was needed to complete development. Despite Lockheed’s assertion to the contrary, NPV analysis demonstrates that the project was never financially viable. However, given the sunk costs, Lockheed’s best option is to continue with production to minimize the project loss. Continuing to production yields an expected NPV loss of $584 million (assuming estimated sales of 210 aircraft) versus a loss of $900 million if production is scrapped outright. Recommendations: Secure the needed $250 million in funding to complete R&D and move into production. Pursue every option possible to boost total sales, including o Adding an option to lease the aircraft rather than purchase outright. This could help more customers afford the L-1011 thereby driving up sales on reducing unit production costs. o Pursue possible sale of the L-1011 to military and (international) government buyers, rather than focuses exclusively on the commercial market. o Attempt to voluntarily boost the 25% deposit made 2 years in advance of delivery. Based on a 10% discount rate, obtaining $1.00 dollar today is equivalent to receiving $1.21 two years from now. Lockheed should incentivize customers to make larger prepayment by offer a single...
Words: 1539 - Pages: 7
...questions 1. Based on the description of planning system before the Redesign Project which function or individuals should be held responsible for the planning problems in FY 2002? In FY 2004? In 2002, Leitax had suffered through poor planning of 3 camera models: the launch of one camera delayed (cost: $19.5 million), another outsold its inventory (costs: $4.5million) and a third model reported sluggish sales ($2.5million). To compensate, Leitax extended the life of an existing model and made a mad scramble to find product and customers but the most costumers preferred to wait for the delayed camera. These events reflect the failure to manage the planning and the operational efficiency. The problem was general because groups did not communicate between them and if the operator group disagreed with the financial group, each group did its own forecasts => lack of cooperation and coordination. These departments should be held responsible largely for the planning problems because they did not perform their job well enough: -Marketing Department: This department should study and evaluate the market trend. -Sales Department: This department is very close to the customers. So, they know the feedback and customer behavior towards the products and can carry on information to another relevant departments to project the sales forecast. -Production Department: When the market trend and sales projection have been estimated, this department would work out and manage the potent...
Words: 1987 - Pages: 8
...report 12 4.1 Use appropriate information processing tools 17 4.2 Prepare a project plan for an activity and determine the critical path 20 4.3 Use financial tools for decision-making 22 Conclusion 26 Introduction In order to enhance the competitive advantages of Highlands Coffee in Ho Chi Minh City over other competitors, the report will show some information that might help the company find out appropriate strategy to maintain their position in market. At the first task is the forecasting technique, which shows various way to calculate the actual sales of the bank in the future, and then show the formal report for the Sales director. In the next task in the reports, there is the information processing tools which shows the decision level and information types in each department and the recommendation for the software for each part of department. In the third task, the project planning have been show the way to prepare the schedule the number of employee should have in this project. In the last task, it is the evaluation of two projects – “Project 1” and “Project 2”. The calculation and recommendation of the suitable project are provide in the end of the report. 3.1& 3.2 Produce graphs using spread sheets and draw valid conclusions based on the information derived. Create trend lines in spread sheet graphs to assist in forecasting for specified business information The data sales of Highland Coffee from 2011 to 2014(£’000) Year | Q1 | Q2 | Q3 | Q4 | 2011...
Words: 4198 - Pages: 17
...percent sales growth between the years 2000 and 2005. Target Corporation’s plans of growth are to open approximately one hundred stores per year in the United States. The basic theory behind the decision is whether each of the investments benefits exceed the cost after adjusting for the risk and timing of cash flows. In order to reach a decision we will look at each project’s net present value, internal rate of return, as well as other demographic factors. The Barn is a $13 million project to build a new store in a moderately populated area. The original development of this project failed and this is a resubmission of that project. A huge positive of this project is that the prototype NPV can be reached even with sales being 18.1% below the R&P forecast levels. This project requires a relatively small investment for a large rate of return. The investment is also a new opportunity to enter a market they had little presence in. There is little downside to accepting this project, therefore it is the number one project of the five to accept. Gopher Place is considered an important investment because of expectations for competitor Wal-Mart to expand n the area because of population growth in recent years. Some advantages of this project include that it would be able to achieve a prototype NPV with sales lower than the R&P forecast. This development would take place in an area of increasing population and relatively high median income. One negative aspect of this project is...
Words: 693 - Pages: 3
...HR Plan-09s HR Demand: Demand Forecasting Techniques I. Index/Trend Analysis II. The Delphi Technique III. Moving Average Method IV. Regression Analysis Method I. Index/Trend Analysis Examining the relationship over time between an operational business index, such as level of sales, and the demand for labour (as reflected by the number of employees in the workforce) is a relatively straightforward quantitative demand forecasting technique commonly employed by many organizations (see the following Table) Table: Index/Trend Analysis |Year |Sales |Number of Employees |Index | | |(Tk thousands) | |(Sales [Tk thousands] per Employee) | |2003 |2800 |155 |18.06 | |2004 |3050 |171 |17.83 | |2005 |3195 |166 |19.25 | |2006 |3300 |177 |18.64 | |2007 |3500 |188 |18.64 ...
Words: 1911 - Pages: 8
...1 FINAL EXAM FINC 5000 Instructions: 1. Please write your name on your answer sheet. Show your detail works 2. The exam is individual work. It is to be your work and your work alone, with no assistance from classmates, family, friends or others. 3. Your completed exam is due on or before 10/09/12 (11:59 P.M). 4. By proceeding with the exam you are agreeing not to share the exam content or your answers with anyone, including students who may take FINC 5000 in the future GOOD LUCK +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 1. To help finance a major expansion, Bull Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 10% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? 2. Assume that Kelly Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D0 = $0.80; P0 = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings? 3. You were recently hired by TOM TOM Inc. to estimate its cost of common equity. You obtained the following data: D1 = $1.75; P0 = $42.50; g = 8.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock? 4. Tomboy plans to issue a $1,000 par value, 20-year noncallable bond with a 8.00% annual...
Words: 2880 - Pages: 12
...arranged a line of credit of $3.5 million with the Hudson National Bank to cover the seasonal sales peak. After going with the analysis, much of these funds were used to fund the capital modernication program. Facing the declining sales, SureCut is facing difficulty in paying its short term loan obligations to Hudson National Bank. After thorough analysis, the need for short term fund requirements should not be used in capital expenses since the cash needed to repay the short term fund requirements comes from the sales of inventory which was the intention of the additional cash to stock up more inventory. Proper utilization of funds is a must for SureCut to be able to manage its payables to its business partners. Case Context SureCut Shears, Inc. manufactures a complete line of household scissors and industrial shears. Their products are distributed through wholesalers to specialty, hardware and department stores around the country. In June 1995, Mr. Fisher, treasurer of SureCut Shears arranged a line of credit of $3.5 million with the Hudson National Bank to cover requirements for the fall anticipating that the loan would be fully paid off by December of the same year. In September 2005, Mr. Fisher called Mr. Stewart of Hudson National Bank to inform him that the company would need an additional $350,000 to cover peak seasonal needs. In January 1996, there was a decrease in sales demand. In April 1996, Mr. Fisher called Mr. Stewart to tell him that SureCut Shears would...
Words: 615 - Pages: 3
...of business either through mergers or investments of corporate funds in the financial securities instead of continuing with the TriStar project and the production of the TriStar aircrafts. The problem with the TriStar project is that it is not financially profitable because it is based on unrealistic sales forecasts calculated on the hope of capturing maybe 35% to 40% of the total free world market of 775 airbuses. The market was defined by 10% annual growth of air travel. A much more realistic approach would’ve been to have calculated a sales forecast on a 5% growth rate travel, which would lead to 323 aircrafts being built and a sales forecast of 113 TriStars. The second problem with this project would be that the break-even sales are incorrect. Lockheed predicted that the project would break even at between 195 and 205. Instead the break-even is more than twice as high at 450. The third problem with the TriStar project would be the cash flow. Cash flow does not become positive until at least the 50th TriStar has been sold. When considering this and future positive cash flows, these are not high enough to cover the pre-production costs that have been incurred. In conclusion, even under the most favorable conditions that Lockheed could have viewed the TriStar project in 1968, it turns out that the project does not even have a positive return on investment or even a way to recover from expenses. Also, investing in the production of TriStar...
Words: 316 - Pages: 2
...macroeconomic activity 2. The reliability of a short-term cash forecast depends most heavily on the quality of: A. Cost of goods sold forecast B. Current ratio forecast C. Sales forecast D. Shares outstanding forecast 3. What is the correct order of the following steps in preparing a projected income statement (not all steps may be shown)? I. Project future net sales II. Project future net income III. Project future cost of goods sold IV. Project future interest expense A. I, II, III, IV B. II, IV, III, I C. I, III, II, IV D. I, III, IV, II 4. What is the correct order of the following steps in preparing a projected balance sheet (not all steps may be shown)? I. Project future cash II. Project future accounts receivable III. Project future accounts payable IV. Project future property plant and equipment A. I, II, IV, III B. II, IV, III, I C. I, III, II, IV D. I, III, IV, II The treasurer of Simmons Corporation, a newly formed software company is trying to ascertain Simmons cash flows for the next three months. Expected sales are: 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received. 5. The cash inflows in March from sales will be: A. $250 B. $245 C. $220 D. None of the above ...
Words: 4066 - Pages: 17
...(1 – T) + Dep * NCS= Net Capital Spending NFAEnd – NFABeg + Dep * NWC= Net Operating Working Capital = NOWCEnd - NOWCBeg * Free Cash Flow (FCF) = (Revenues – Costs) (1- Tc) – Cap. Expenditures – ΔNWC + (Dep) (Tc) Chapter 4 * Financial Planning has three important uses: 1. Forecast the amount of external financing that will be required 2. Evaluate the impact that changes in the operations plan have on the value of the firm 3. Set appropriate targets for compensation plans * The following steps are used to develop a financial forecast: 1. Forecast sales 2. Project the assets needed to support sales 3. Project internally generated funds 4. Project outside funds needed 5. Decide how to raise funds 6. See effects of plan on ratios and stock price * Parts of financial planning model: * Inputs * The planning model * Outputs * Key Ratios: * Profit Margin: NI/ Sales * ROE: NI / Common equity * DSO: AR/ (Annual Sales / 365) * Avg. time it takes to collect rev after sale has been made * Inventory Turnover: Sales/ Inventory * Fixed Asset Turnover: Sales/ NFA (Net Fixed Assets= Fixed assets- acc. Depre.) * Debt/ Assetss: TD (Total Debt) / TA (Total Assets) * TIE: EBIT/ Interest Expense * Current Ratio: CA (Current Assets) / CL (Current Liabilities) * NOPAT (Net operating profit after tax) : EBIT (1 – T) *T= Tax rate ...
Words: 361 - Pages: 2
...The body shop international: An Introduction to financial modeling The body Shop Case study Question 1: Base Case Assumptions In order to derive this forecast, ‘percent-of-sales’ forecasting was used, which involves initially forecasting sales and then forecasting other financial statement accounts based on their direct relationship with sales. This method of forecasting was used due to the lack of information available (only the last three years of financial statements). As a result, every account in the pro forma financial statements are based on one or more key assumptions about their relationship with sales: Sales: It is assumed that sales turnover will continue to grow at a rate of 11% every year. This figure is the historical average of growth (change) in the last 3 years and reiterates Patrick Gournay’s plans to increase sales. It is unlikely that the firm will be able to achieve 20% growth again as the firm has reached its ‘maturity phase’ in the business cycle (further discussed in 3). COGS: A historical average was taken to get an initial percentage of 40% and then it was assumed that this would decrease at rate to the power of 1.05. The reason for this assumption is because Gournay stated that he aimed to specifically target and reduce costs. However, change is often initially met by resistance, so there may be considerable time lag for large-scale changes to occur. For this reason it is assumed that COGS would decrease at an exponential rate to the power...
Words: 2367 - Pages: 10
...Team B Week Four: Supply Chain Design OPS/571 March 4, 2014 Team B Week Four: Supply Chain Design Riordian Manufacturing is a manufacturing company specializing in the production of plastic products and fans. The fan manufacturing plant is located in Hanzhou, China. The manufacturing of the fans is a make-to-stock operation. Future demand for the fans is forecasted based on the average sales of the last three years. Inputs for the production of the fans are acquired locally. The China plant uses the services of a local Chinese shipping company for delivery of goods. The plant uses FedEx or another Chinese shipping company for international shipments. Process flows, performance evaluation metrics, supply chains, lean production principles, and forecasting are all components in maintaining the success of Riordian Manufacturing. Supplier Relationships and the Effects on the Supply Chain Riordian Manufacturing’s plant in Hangzhou, China requires two major inputs for the electric fan production process. The first is high-density polyethylene plastic pellets (HDPE). Not much is mentioned on Riordian’s intranet other than the HDPE is purchased locally. The second major input is the electric motors that power the fans. The motors are produced locally by the Yin Motor Company (YMC). The Yin Motor Company became Rioridan’s supplier due to previous business or family relationship between YMC and Riordian’s partners in China. Rioridan receives the electric motors...
Words: 2220 - Pages: 9
...advanced technology with the ability to manufacture faster and at lower costs. With the emergence of this sophisticated technology, the company requires change to cease the decease of revenue and sales (University of Phoenix, 2012). Guillermo hires Jevaloch Consulting Firm, Incorporated to examine his current business forecast and choose strategies in optimal working capital. Additionally, Jevaloch will also provide an efficient pro forma budget and recommend an implementation plan. Guillermo Furniture Forecast Forecasting is an important tool for estimating the future market value for the business. Jevaloch consultants began the examination of Guillermo Furniture by reviewing a six month Figure 1.1 Budget Sales Forecasts. Figure 1.2 Actual Sales Forecasts. projection of sales forecast for units of chairs, the top sales item for the store, sold from January to June 2010. Figures 1.1 and 1.2 are representative of the budget unit sales and actual unit sales for Guillermo Furniture. The average monthly demands for the budget sales is 18,014/6 = 3002.3 and 17,997/6 = 2999.5 for actual sales. Although the monthly averages differ slightly, the actual sales are higher per month than the budget sales. Budget sales show a steady increase with a dip in the month of June and actual sales remain steady at about 3,000 units with a slight dip in March. Jevaloch concludes Guillermo possesses excellent managing skills for the company and proceeds forward with the optimal...
Words: 2588 - Pages: 11
