...Stryker Corporation: In-sourcing PCBs Stryker Corporation: In-sourcing PCBs Cerutti, Carolina Del Valle Repalde, Angie Samour, Diego Zambrano, Fátima Daniel Ariza Naranjo Evaluación financiera de proyectos UNIVERSIDAD DE LA SABANA ESCUELA INTERNACIONAL DE CIENCIAS ECONÓMICAS Y ADMINISTRATIVAS Chía, Noviembre de 2015 Stryker Case Questions 1. State the business case for option 3, the PCB InSourcing proposal. Option #3 was for Stryker Instruments to manufacture its own PCBs in its own facility near company headquarters in Kalamazoo, Michigan. Once such a facility was up and running, it might be expanded to supply PCBs to other Stryker businesses as well. The requierements to accept this option are the following: - the larget capital outlay of the 3 options - the largest increment in headcount and payroll - it would have to obtain numerous approvals - a new building - a growth in the production volume - new production costs: materials, variable and fixed costs - payment conditions of: 120 days Of all the options this one was the one that promised the highest degree of control over quality and delivery. 2.Use the projections provided in the case to compute incremental cash flows for the PCB project, as well as its NPV, IRR and payback period. The projections in the case shows Instruments’ expected expenditures on PCBs for the year 2004 to the year 2009 under the old sourcing strategy using contract manufacturers....
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...Stryker Corporation is a medical company founded in 1946 by Homer Stryker. It specializes in medical technology and it is headquartered in Kalamazoo, Michigan. This report will be focused Stryker Corporation’s capital budgeting process and identifying some of the strengths and weaknesses that come along with it. The missions of CERs and the capital budgeting at Stryker: Stryker Corporation has had an outstanding growing background since it started. They have a benchmark of 20% growth annually, and one of the reasons the firm has been able to do this is their way of managing their capital budgeting process. Stryker used CERs (Capital Expenditure Requests) in their capital allocation process. These were basically permission forms that were submitted to be filled out by the authorities in order to get allowance to spend a certain amount of money. The mission of the CERs and the capital budgeting process at striker is to standardize and formalize the capital budgeting process. The CERs made it easier for the company to keep track of the expenditures that were made in each division. Thus, the firm was able to support cash flow targets and maintain the 20% growth of the company. The CERs have been shaped by elements of corporate finance theory. The fact that the CERs are made to have a smarter way of managing the expenditures of the company, automatically refers to the principal goal of corporate finance which is to maximize shareholder’s wealth. Since the CERs are helping...
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...Net Present Value and Capital Budgeting Course Module in Introductory Finance Course Modules help instructors select and sequence material for use as a part of a course. Each module represents the thinking of subject matter experts about the best materials to assign and how to organize them to facilitate learning. Each module recommends four to six items. Whenever possible at least one alternative item for each main recommendation is included, as well as suggested supplemental readings that may provide a broader conceptual context. Cases form the core of many modules but we also include readings from Harvard Business Review, HBS background notes, and other course materials. Click here to add the full list of materials to your library (you must be logged in as a registered user. Not registered? Sign up now.) 1. Overview of suggested content (HBS case unless otherwise noted) Title Author Product Number Publication Year Pages Teaching Note 1. Time Value of Money Introduction Buying Time (HBS online tutorial) Kaplan 104708 2005 -- -- Alternative: Introduction to Accumulated Value, Present Value, and Internal Rate of Return Hammond 173003 1972 10p -- Valuing Capital Investment Projects Kester 298092 1997 5p 204152 Alternative: Tree Value Ruback 201031 2000 3p 202018 Luehrman 207121 2007 6p 209156 Luehrman & Abelli 4212 2010 8p 4213 Piper & DeVolder ...
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...the missions of CERs and the capital budgeting process at Stryker? Mission: Standardize and formalize the capital budgeting process. The CERs and capital budgeting process were implemented so that a more formal process of requesting capital expenditure and approving them would be applied. All this was put in place to support cash flow targets and maintain Stryker’s 20% growth benchmark. To what extent have they been shaped by elements of corporate finance theory? They are heavily influenced by corporate finance theory * All submissions are required to show the net present value (NPV), internal rate of return (IRR) and payback period. * They need to highlight the project’s anticipated outgoing cash flow and earnings effects on the company and describe specific risks that could affect the projects abitily to deliver projects economic results. * Specifically for mergers the CER would include financial analyses of “Best Case” and “Worst Case” scenarios which would include income and cash flow figures. To what extent are they shaped by Stryker’s particular industry, history, and culture? These factors play a role in shaping the CERs and capital budgeting: * Industry: With a growth in the medical industry and an aging baby boomer population Stryker would naturally see a growth. However to continue to achieve this growth a steady or increased rate they would need to establish a method (in this case CERs and capital budgeting process) to make the best financially...
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...HARvAR D I " , srNEss I , . " Tt . W-rEr 5gor6ffi, TIMOTHY A. LUEHRMAN Stryker Corporation: In-sourci In late May 2003 executives in Stryker Corporation component of many of Stryker Instrument,s medica from a small number of contract manufacturers. more than 910 million in each of the next two Instruments business grew. In recent years, been unsatisfactory with respect to quali$ repeatedly found itself looking for new su bankruptcy, a financially weak suppl appearance of several current suppli Stryker Instruments' establish a Stryker was Stryker ucts. Currently, Stryker purchased ts had resolved to address the issue. nt basic sourcing policy for PCBs, but with important tect against future disruptions by acquiring safety stocks of rcing of all electronic assemblies. Option #2 would boost supplier of PCBs and ility for supplying them. The partnership and incriased business from the supplier, further boosting its reliability. Option #3 was for acture its own PCBs in its own facility near company headquarters in such a facility was up and running, as well. PCBs PCBs ments business anticipated spending an amount that would increase as the of some contract manufacfurers had /or responsiveness and Stryker had lly, contract manufacturers tended to were not uncommon/ and even without reliable. Given recent events and the shaky rs studied three options for improving the situation. Option #1...
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...us ed in a spreadsheet, or transmitted in any form or by any meanselectronic, mechani cal, photocopying, recording, or otherwisewithout the permission of Harvard Business School. TIMOTHY A. LUEHRMAN Stryker Corporation: In-sourcing PCBs In late May 2003 executives in Stryker Corp orations Instruments business were actively considering a change in their sourcing strategy fo r printed circuit boards (PCBs), a key electronic component of many of Stryker Instruments medi cal products. Currently, Stryker purchased PCBs from a small number of contract manufacturers. The Instrument s business anticipated spending more than $10 million in each of the next two years on PCBs, an amount that would increase as the Instruments business grew. In re cent years, the performance of some contract manufacturers had been unsatisfactory with respect to quality, delivery and/or responsiveness and Stryker had repeatedly found itself looking for new suppliers. More generally, contract manufacturers tended to operate on thin margins with scant capital. Ba nkruptcies were not uncommon, and even without bankruptcy, a financially weak supplier was simply less reliable. Given recent events and the shaky appearance of several current suppliers, Stryker Instruments had resolved to address the issue. Stryker Instruments manufacturing managers stud ied three options for improving the situation. Option #1 was to maintain the current basic...
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...Mergers and Acquisitions Basics Mergers and Acquisitions Basics All You Need To Know Donald DePamphilis Amsterdam • Boston • Heidelberg • London New York • Oxford • Paris • San Diego San Francisco • Singapore • Sydney • Tokyo Academic Press is an imprint of Elsevier Academic Press is an imprint of Elsevier 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA Elsevier, The Boulevard, Langford Lane, Kidlington, Oxford, OX5 1GB, UK Copyright © 2011 Elsevier Inc. All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions. This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary. Practitioners and researchers must always rely on their own experience and knowledge...
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...THE INTELLIGENT INVESTOR A BOOK OF PRACTICAL COUNSEL REVISED EDITION B E NJAM I N G RAHAM Updated with New Commentary by Jason Zweig To E.M.G. Through chances various, through all vicissitudes, we make our way. . . . Aeneid Contents Epigraph iii Preface to the Fourth Edition, by Warren E. Buffett viii A Note About Benjamin Graham, by Jason Zweig x Introduction: What This Book Expects to Accomplish COMMENTARY ON THE INTRODUCTION 1. 1 12 35 The Investor and Inflation 47 COMMENTARY ON CHAPTER 2 3. 18 COMMENTARY ON CHAPTER 1 2. Investment versus Speculation: Results to Be Expected by the Intelligent Investor 58 65 COMMENTARY ON CHAPTER 3 4. A Century of Stock-Market History: The Level of Stock Prices in Early 1972 80 General Portfolio Policy: The Defensive Investor 88 COMMENTARY ON CHAPTER 4 5. 101 124 Portfolio Policy for the Enterprising Investor: Negative Approach 133 COMMENTARY ON CHAPTER 6 7. 112 COMMENTARY ON CHAPTER 5 6. The Defensive Investor and Common Stocks 145 iv 155 COMMENTARY ON CHAPTER 7 8. Portfolio Policy for the Enterprising Investor: The Positive Side 179 The Investor and Market Fluctuations 188 v Contents COMMENTARY ON CHAPTER 8 9. Investing in Investment Funds COMMENTARY ON CHAPTER 9 213 226 242 10. The Investor and His Advisers 257 COMMENTARY ON CHAPTER 10 272 11. Security...
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...CAREERS IN MARKETING ★ ★ ★ ★ ★ INDUSTRY TRENDS AND RANKINGS POSITIONS AND RESPONSIBILITIES WORKPLACE CULTURE AND COMPENSATION THE RECRUITING PROCESS ★ INSIdER SCoop: FRoNT-LINE REpoRTS ★ GuIde Careers in Marketing 2008 EDITION InsIder Careers in Marketing WETFEET, INc. The Folger Building 101 Howard Street Suite 300 San Francisco, CA 94105 Phone: (415) 284-7900 or 1-800-926-4JOB Fax: (415) 284-7910 Website: www.wetfeet.com carEErs IN markETINg 2008 Edition ISBN: 978-1-58207-759-8 PhOTOcOPyINg Is PrOhIbITED Copyright 2008 WetFeet, Inc. All rights reserved. This publication is protected by the copyright laws of the United States of America. No copying in any form is permitted. It may not be reproduced, distributed, stored in a retrieval system, or transmitted in any form or by any means, in part or in whole, without the express written permission of WetFeet, Inc. The publisher, author, and any other party involved in creation, production, delivery, or sale of this WetFeet Insider Guide make no warranty, express or implied, about the accuracy or reliability of the information found herein. To the degree you use this guide or other materials referenced herein, you do so at your own risk. The materials contained herein are general in nature and may not apply to particular factual or legal circumstances. Under no circumstances shall the publisher, author, or any other party involved in creation, production or delivery of this guide be liable to...
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...Army Regulation 350–1 Training Army Training and Leader Development Rapid Action Revision (RAR) Issue Date: 4 August 2011 Headquarters Department of the Army Washington, DC 18 December 2009 UNCLASSIFIED SUMMARY of CHANGE AR 350–1 Army Training and Leader Development This rapid action revision, 4 September 2011-o Implements the Don’t Ask, Don’t Tell Repeal Act of 2010 by deleting all references to developing and conducting training concerning the Army’s Homosexual Conduct Policy (paras 2-21p and 2-22k.) o Rescinds paragraphs 2-6r, 2-46ac, and G-14e.) o Makes administrative changes (app A: marked obsolete forms and publications; corrected forms and publication titles; and corrected Web site addresses; glossary: deleted unused acronyms and corrected titles/abbreviations as prescribed by Army Records Management and Declassification Agency). *Army Regulation 350–1 Headquarters Department of the Army Washington, DC 18 December 2009 Effective 18 January 2010 Training Army Training and Leader Development History. This publication is a rapid action revision (RAR). This RAR is effective 20 September 2011. The portions affected by this RAR are listed in the summary of change. Summary. This regulation consolidates policy and guidance for Army training and leader development and supports a full-spectrum, force protection, expeditionary Army. Applicability. This regulation applies to the active Army, the Army National ...
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