...9-207-096 REV: APRIL 10, 2008 The Case of the Unidentified Industries—2006 Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F265469 If you were asked to visualize (in income statement and balance sheet form) the financial structure of a typical firm in one particular industry, do you think you could do it? How close to your “vision” do you think the “reality” would be? What if you were asked to do the same experiment covering 14 firms drawn from 14 different industries? How many of the 14 do you think you would get right? You may be surprised by how much you already know! Exhibit 1 presents the balance sheets (in percentage form) and other selected financial data for 14 firms drawn from 14 different industries. While there are clear differences in the financial structures of different firms within a single industry, the firms selected have figures that are broadly typical of those in their industry. Try to match the 14 firms operating in the 14 industries named below with the 14 sets of financial data presented in Exhibit 1. Use any approach you find helpful. Advertising agency (about half of total revenue derived from commissions that equal 15% of media purchases for clients) Airline Bookstore chain Commercial bank (fitted into the most nearly comparable balance sheet and ratio categories of the nonfinancial companies) Computer software developer Department store chain (with its “own brand” charge...
Words: 1282 - Pages: 6
...| The Case of the Unidentified Industries-2006 | | In this case, a summary sheet which contains 14 sets of financial data from 14 different industries is provided. The task is to match 14 different firms with 14 industries by distinguishing the differences (e.g. sources of financing, profitability, the inventory turnover and the accounts receivable collection period) in the financial structures. 1. Advertising agency: the matching industry is E. As a service firm, it does not contain inventory, so first of all, it can be narrowed down to E, G, M, and N. And generally B to B firms provide credit terms to their customers which result in receivables collection periods(RCP) is larger than 30 days, therefore it can be further narrow to E,G,N. Furthermore, based on the given hint, the media purchase is made on behalf of the client, which means the account receivable and account payable should be roughly equal, since the agency does not pay for the media services until their client pays. 2. Airline: the matching industry is M. Similar to Ad agency, it is a service firm, so its inventory is zero as well (G, M, N), and moreover, it is also a Business to Customer firm, its RCP is relative short(less than 30 days), so only M (RCP=12) is left which matches the description. 3. Bookstore chain: the matching industry is B. Retail firms like bookstore chain are likely to have shorter RCP (less than 30 days), which means only A, B, H, I, K and M match this description...
Words: 1731 - Pages: 7
...The Case of the Unidentified Industries-2006 1. Advertising Agency –E We believe the matching industry is Company E. As a service firm it does not contain inventory. It will also have zero inventory turnover. Through research we learned that the media purchase is made on behalf of the client which means that the accounts receivable and accounts payable would be roughly equal to one another. In addition, the receivable collection period (RCP) is greater than 30 days which is common in business to business firms. Also, the firm has a low debt to asset ratio and this is again because the advertising agency industry has no inventory. 2. Airline Industry-M We feel like industry M best suits this industry. Similar to the advertising industry the Airline industry the airline industry is also a service industry. Meaning the level of inventory is also zero. More importantly however, this industry’s main assets include fleets of airplanes and this will reflect a high plant and equipment percentage. The receivables collection period (days) for industry M is 12, because in this service industry the receivables collection period is short this. Also, most of the sales are processed quickly many in cash therefore their account receivables will also reflect a low number. For this reason we feel that letter M fits the description for the airline industry. 3. Bookstore Chain-B The matching industry is B. Bookstore chains are part of the retail market and their plant...
Words: 1315 - Pages: 6
...Best Practice Series Guidelines for Best Practice in the Use of Job Analysis Techniques Contents 1. 2. 3. 4. 5. 6. 7. Introduction Job analysis in practice Job analysis techniques The application of job analysis information: the generation of competencies Social and organisational issues Future trends in job analysis A final word Page No 1 5 6 10 12 16 17 18 19 20 21 Glossary SHL services References Further reading 1. Introduction Because job analysis is an important precursor to many Human Resource activities, SHL is committed to promoting and maintaining quality practices in this area. These guidelines are based on best current professional opinion and are intended to provide an account of best practice. They are supplied to clients, and should be used for guidance only. They are NOT intended as a substitute for a recognised training course. 1.1 What is job analysis? Job analysis is a systematic process for collecting and analysing information about jobs. Job analysis provides information about the work performed and the work environment. It also identifies the knowledge, skills, abilities and personal competencies people need to perform their work well. In short, it is a method that provides a description of the job and profiles the competencies people need to be successful. Most definitions of job analysis identify three key points: • Job analysis is not a single methodology - it is a generic term which refers to a range of techniques, including observation...
Words: 6041 - Pages: 25
...Case analysis of Unidentified Industries--2006 Although different industries have their own characteristic, we can see some common features in certain industries. Thus we divide them into 4 kinds: Service, retail trade, manufacturer and online seller. List as below: Classification of Different Industries and their features 1. Service (Table 1) Advertising agency (AG) Commercial bank Health maintenance organization (HMO) →Their services are based on human resources. They do not need a lot of PP&E or inventories and lots of money (like long-term debt). Since they provide their service first and the customers always pay at the end of the service, their account should be high. So now we want to find an industry that is zero inventories, low PP&E, high accounts receivable and low long-term debt. See the table 1, we find E, G and N each has a very high accounts receivable, low inventories and PP&E. It shows that they are all service industries. Now we have to look deeply to find the difference among these three industries. First, N has an extremely high accounts receivable (90%) and the longest receivables collection period (4,071 days). And their biggest part of liabilities is notes payable. It really meets the features of Commercial bank. So N is Commercial bank. What the different between E and G? We find that their percentages of balance sheets are almost the same. So we have to find some clues from selected financial data. It shows that their Receivables...
Words: 337 - Pages: 2
...Business Source Complete electronic database. See LEARN for instructions. * Read: “Assessing a Company’s Future Financial Health,” Thomas Piper, Harvard Business School, May 2012. Available in AFM 211 Courseware Package; AND, * Complete ratio analysis for SciTronics in “Assessing a Company’s Future Financial Health” on pages 6-10 and use that analysis to answer questions 1 and 3 framed as “broad questions” at the top of page 6. * Try the “Case of the Unidentified Industries” in “Assessing a Company’s Future Financial Health” on page 11 and Exhibit 3. | Operating and Investing Decisions: Value Chain, Profit Model, and Profit Driver Analysis | May 15th Lecture AL 116 [6:00 – 6:50PM]Topic: Relevant – It Depends. On what? | May 19 – 23 | * Complete Online Module # 1 – Learning with Cases | No face-to-face class [Note: allocate your class and prep time to complete Online Module # 1] | May 22nd AFM 211 Exam # 1 [7:00 – 9:00PM]Location TBAExam # 1: Exercises. Document Business Model Canvas; Ratio Analysis; Identifying Unidentified Companies [see Piper article, pages 11-13]. | May 26 – 30 | * Read: “Financing...
Words: 956 - Pages: 4
...The Distribution of Value in the Mobile Phone Supply Chain Jason Dedrick, Kenneth L. Kraemer, Greg Linden* Personal Computing Industry Center (PCIC) University of California, Irvine 4100 Calit2 Building 325, Suite 4300 Irvine, California 92697-4650 October 2010 *Authors are listed alphabetically. The Personal Computing Industry Center is supported by grants from the Alfred P. Sloan Foundation, the U.S. National Science Foundation, industry sponsors, and University of California, Irvine (California Institute of Information Technology and Telecommunications, The Paul Merage School of Business, and the Vice Chancellor for Research). Online at http://pcic.merage.uci.edu. The Distribution of Value in the Mobile Phone Supply Chain Jason Dedrick, Kenneth L. Kraemer, Greg Linden* Personal Computing Industry Center, UC Irvine 4100 Calit2 Blgd. 325, Suite 4300 Irvine, CA 92697-4650 October 2010 Abstract The supply chains of the mobile phone industry span national and firm boundaries. To analyze how value is distributed among the participants, we apply a novel framework for analysis based on financial measures of value capture to three phone models introduced from 2004 to 2008. We find that carriers capture the greatest value (in terms of gross profit) from each handset, followed closely by handset makers, with suppliers a distant third. However, the situation is reversed in terms of operating profit. Carriers shoulder the burden of network installation...
Words: 9442 - Pages: 38
...University of Kashmir, Srinagar190006, India Abstract: Conflict and instability in Jammu and Kashmir have been a major hindrance to its development and progress levels. Tourism is identified as the engine of growth and Development of Jammu and Kashmir economy in general and Kashmir valley in particular. The development of tourist industry can have a significant impact on the overall growth of the state, because of its ability to create direct and indirect employment, as well as growth in allied industries. Tourism will likely contribute to the growth of secondary sectors such as handicrafts, which have historically benefitted from visitors to the state. As tourism is widely recognized as a major mechanism of employment generation, especially in the service sector, holds significant role forpoverty alleviationand unemploymentin thestate.Kashmir being animportant tourist destination in India has witnessed downfall because of theongoing unrest especially during the last two decades which has hindered the smooth growth oftourism industry. The valley of Kashmir has been engulfed in a violent situation since 1989, which has threatened the sustainability of tourism industry. The political instability in turn has greatly altered the direction, flow, patternand volume of tourists to the destination. The present paper investigates the temporal changes in the flow pattern of tourists to the valley and also analyses thetourist nodes of thestate which...
Words: 4387 - Pages: 18
...Capturing Value in Global Networks: Apple’s iPad and iPhone Kenneth L. Kraemer, Greg Linden, and Jason Dedrick1 University of California, Irvine, University of California, Berkeley and Syracuse University July 2011 1 Acknowledgement: This research has been supported by grants from the Alfred P. Sloan Foundation and the U.S. National Science Foundation (CISE/IIS). Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the Sloan Foundation or the National Science Foundation. Abstract This article analyzes the distribution of value from innovation in the global supply chains of the Apple iPad and iPhone. We find that Apple continues to capture the largest share of value from these innovations. While these products, including most of their components, are manufactured in China, the primary benefits go to the U.S. economy as Apple continues to keep most of its product design, software development, product management, marketing and other high-wage functions in the U.S. China’s role is much smaller than most casual observers would think. A key finding for managers is that they need to beware of relying too heavily on single customers. With its control over the supply chain, Apple has the power to make and break the fortunes of many of its suppliers. A key finding for policymakers is that there is little value in electronics assembly. Bringing high-volume electronics...
Words: 3262 - Pages: 14
...| Website | skybus.com | Skybus Airlines Inc. was a privately held airline based in Columbus, Ohio, United States.[1] It operated as an ultra low-cost carrier modeled after the European airline Ryanair, and aimed to be the least expensive airline in the United States. The business model was heavily reliant on flying routes where other airlines did not have direct flights, as Ryanair did in Europe, thus keeping competition to a minimum, and on flying into secondary airports, rather than heavily trafficked ones. The airline also sold advertising space on the interior and exterior of its aircraft, as well as selling merchandise on board. Skybus applied for operating approval on January 1, 2005,[2] received approval to operate on March 15, 2006,[3] and FAA certification on May 10, 2007.[4] It had been granted a waiver to begin ticket sales on April 24, 2007;[5] Skybus' first passenger flights out of Columbus began on May 22, 2007. Less than a year later, Skybus announced on April 4, 2008, that it would cease operations as of April 5, citing the lagging economy and rising fuel costs as causes.[6] Contents * 1 History * 2 Destinations * 3 Business...
Words: 2464 - Pages: 10
...At similar concentrations of chlorine and bromine, bromine incorporation into THMs and HAAs is preferred over chlorine incorporation. This is because HOBr is 20 times stronger oxidant than HOCl so reacts faster with NOM shifting the distribution of THMs and HAAs to more brominated species. Ratio of applied chlorine to bromine plays an important role in the speciation of THMs and HAAs (Uyak & Toroz, 2007). Increase in bromide ion concentration first results in the formation of mixed choro-bromo species to fully brominated ones (Hua et al., 2006). It has been reported that brominated DBPs so formed are more carcinogenic as compared to the chlorinated ones (Uyak & Toroz, 2007). Water and wastewater treatment processes remove organic carbon but bromide ion is quite resistant to be removed by these and hence ultimately ratio of bromide ion to total organic carbon (TOC) increases. This increases the fraction of brominated DBPs (Roccaro et al.,...
Words: 5395 - Pages: 22
...CHAPTER I THE PROBLEM AND ITS BACKGROUND Introduction Over the past three decades, From the dream of a group of sisters thirty-three years ago, the institution has blossomed and will continue to grow for many years to come, always adherent to its mission of serving mankind with commitment, competence, compassion, loyalty, and love. One of the courses offered is the Bachelor of Hotel and Restaurant Management. When they have reached their final last year in the College, they are required to undergo to their On-the-Job Training these are offered in every College or University in any course to prepare their students in facing the challenges of the real life such as landing their job. The employability of every applicant is not measured by the lessons they have learned inside the school but the type of training and potentials has been developed. Hence, On-the-Job Training plays a vital role the life of every student because these training are on big factor landing their preferred jobs. Most of the companies nowadays hire their personnel who are equipped of adequate skills and knowledge and capable of performing such duties and responsibilities maybe assigned. The On-the-Job Training is one of the important for parents who want better future for their youth. Students will acquire the knowledge and skills necessary to understand the processes of training and development. The course covers components of training design, including needs assessment, objectives, and evaluation...
Words: 9135 - Pages: 37
...Pairs Trading: Performance of a Relative-Value Arbitrage Rule Evan Gatev Boston College William N. Goetzmann Yale University K. Geert Rouwenhorst Yale University We test a Wall Street investment strategy, ‘‘pairs trading,’’ with daily data over 1962–2002. Stocks are matched into pairs with minimum distance between normalized historical prices. A simple trading rule yields average annualized excess returns of up to 11% for self-financing portfolios of pairs. The profits typically exceed conservative transaction-cost estimates. Bootstrap results suggest that the ‘‘pairs’’ effect differs from previously documented reversal profits. Robustness of the excess returns indicates that pairs trading profits from temporary mispricing of close substitutes. We link the profitability to the presence of a common factor in the returns, different from conventional risk measures. Wall Street has long been interested in quantitative methods of speculation. One popular short-term speculation strategy is known as ‘‘pairs trading.’’ The strategy has at least a 20-year history on Wall Street and is among the proprietary ‘‘statistical arbitrage’’ tools currently used by hedge funds as well as investment banks. The concept of pairs trading is disarmingly simple. Find two stocks whose prices have moved together historically. When the spread between them widens, short the winner and buy the loser. If history repeats itself, prices will converge and the arbitrageur will profit. It is hard to believe...
Words: 2306 - Pages: 10
...The vote, taken by five School of Business Promotion Committee members and the candidate’s representative revealed 3 votes in favor and 3 votes Evaluating Financial Health Dr. C. Bulent Aybar Professor of International Finance Recall the Three Pillars of Value Creation • Managers create value by focusing on product market and financial market strategies. • Product market strategies involve management of revenues and expenses, efficient allocation and use of firm assets as well as sound (positive NPV) investment decisions. • Financial market strategies involve prudent management of liabilities and optimal mix of debt and equity in funding firm operations and investments. • Finally financial market strategies require optimal distribution decisions that would balance firm’s reinvestment needs and shareholder wealth. © Dr. C. Bulent Aybar Creating Value Through Growth and Profitability Growth and Profitability Product Market Strategies Financial Market Strategies Operations Investments Financing Decisions Distribution Decisions Managing Revenues and Expenses Managing Working Capital and Fixed Assets Managing Liabilities and Equity Dividends and Repos Return on Equity • The starting point for a systematic analysis of a firm's performance is its return on equity (ROE), defined as: • ROE=Net income/ Equity • ROE is a comprehensive indicator of a firm's performance because it provides an indication...
Words: 3411 - Pages: 14
...9 -9 1 1 -4 1 2 REV: MAY 28, 2012 Assessing a Company’s Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they consider the extension of credit, long-term supplier agreements, or an investment in a company’s equity. History abounds with examples of companies that embarked on overly ambitious programs and subsequently discovered that their portfolios of programs could not be financed on acceptable terms. The outcome was frequently the abandonment of programs mid-stream at considerable financial, organizational, and human cost. It is the responsibility of management to anticipate a future imbalance in the corporate financial system before its severity is reflected in the financials, and to consider corrective action before both time and money are exhausted. The avoidance of bankruptcy is an insufficient standard. Management must ensure the continuity of the flow of funds to all of its strategically important programs, even in periods of adversity. Figure A provides a conceptualization of the corporate financial system, with a suggested step-bystep process to assess whether it will remain in balance over the ensuing 3 to 5 years. The remainder of this note discusses each of the steps in the process and then provides an exercise on the various financial measures that are useful as part of the analysis. The final section of the note demonstrates ...
Words: 5441 - Pages: 22
