...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 - 1995 Solution: In order to find out the exact firm by analysing the financial structure of typical firms, first we need to separate those firms which have zero inventory turnover (A, B, F and H) from those firms which have zero debt ratio which in our case are (E, H and J) and we use the information to narrow down the possibilities of each firm. In this case there are three groups of companies: 1) Firms having zero inventory turnover. 2) Firms having zero debt. 3) Firms having all financial ratios given. 1) Firms having zero inventory turnover: Under the category of zero inventories, there are four companies. The nature of these companies show that they are not involved in any production, but they provide services to the people and from services they generate cash. Each one with the name and reason is mentioned below. Firm A. Commercial Bank: The financial structure of (A) firm shows that it has zero inventory turnover and high receivables collection period. Banks usually have a large amount of receivables because they lend money to the individual people and a company due to which the average number of days, which in this case is very high, requires to convert receivables into cash is very high. Its financial structure also shows that the firm has borrow money from outside to pay debt to its customers. Firm B. Advertising Agency: This firm has very high receivables and payables due to one reason or the other...
Words: 334 - Pages: 2
...December 2005. Available for free through UW library’s 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
...Strategy Competing in overcrowded industries such as technology is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space. The Apple Ipad and Kindle Fire would be considered Blue Ocean products as oppose to Red Ocean products. Apple achieved a worthy invention by designing the Ipad, which led to the creation of a new market space. Apple intrigued consumers with the limits of the space by educating customers on its comprehensible use. Amazon introducing the Kindle Fire shortly after the Ipad which targeted non-Ipad users and defined its own name by developing the Kindle Fire as a media savvy device with prominent features enabled by Amazon’s massive media platform. Both of these similar but distinctive products made the competition irrelevant. According to Kim and Mouborgne (2004), “Blue Ocean strategy is simply creating an uncontested market space and defining its boundaries rather than competing in the confines of an existing industry”. As the space for products get more and more crowded, projections for profits and growth are condensed. Blue oceans represent all the industries not in existence today in the unidentified market space, untainted by competition (Kim and Mouborgne, 2004). In blue oceans, demand is created rather than fought over. There is sufficient opportunity for growth that is both profitable and prompt. Companies can give rise to completely new industries and in most cases, a blue ocean is created from within...
Words: 748 - Pages: 3
...What is sex trafficking? Sex trafficking, or also known as human trafficking, is the trade of actual human beings and used for the purpose of sex slavery, forced labor,commercial sexual exploitation, and other appalling things for the trafficker or more. “Sex trafficking occurs when someone uses force, fraud or coercion to cause commercial sex act with an adult or causes a minor to commit a commercial sex act” (Smith). There are also commercial sex acts which include: prostitution, pornagraphy, and any sexual performance; only if done in exchange of items like money, drugs, food, clothes, or shelter. Because there is a serious demand for an industry like this, sex trafficking is a popular business. This industry is cyclical, it starts where...
Words: 961 - Pages: 4
...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
...understand what exactly is out there. People have been fascinated by alien life forms a fact which can be seen in the many successful movies on the subject. The many reported cases of unidentified flying objects that are still a mystery and which have generated conspiracy theories that have fanatical believers (Arnold.112). There are tales of flying saucers and elaborate accounts of encounters with aliens. With all these conspiracies theories, TV shows, movies and alien life form fascination, it hard to decipher the fiction from the reality. E.T. moved movie audiences with a story of friendship between an alien and a human. Star Wars stretched the human imagination and demonstrated the possibility of an enterprise with human and alien life forms out there in the galaxy. The Stargate series adds the concept of time travel and the use of alien technology to defend the earth from hostile aliens. It depicts a complex relationship between humans and aliens in strategic alliances driven by mutual interest and the greed for power and influence on a universal level. Hollywood is dynamic on the issue of aliens because it has cast good aliens such as Superman and those that are a threat as seen in Independence Day. In essence the question as whether we are really alone has been taken more seriously by the movie industry and they have found a ripe market for their innovative ideas relying on the human fascination with the existence of more advanced life forms. Therefore the big screen has...
Words: 916 - Pages: 4
...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
...Tech campus shooting catastrophe, where email was the sole means of alerting students initially, proves that using any single modality can make a crisis worse. Some of us may be on email constantly, others not so. Some of us receive our cellphone calls or messages quickly, some not. If you use more than one modality to reach your stakeholders, the chances are much greater that the message will go through. (Bernstein, 2013) To have effective communication in time of crisis, our organization has implemented plans that allow us to effectively deal with the situation, the media and those that are effected. With the use of all forms of media, as well as documented known conditions we hold a strong belief that we can correct this current situation. It has come to the attention of the county and this office of the Emergency Management that an unidentified contaminate has leaked into the local water reserves. This contamination has been found in all city water tabs in the county. We are first reassuring the public that we are taking every precaution, starting at the lowest levels, to ensure our communities safety. With safety in mind first, it is important that we identify the unidentified contaminate, and...
Words: 1578 - Pages: 7
...Algodones Dunes Sci/256 7-29-13 Sheryl Wildt Algodones Dunes Earth is a complex entity comprised of many different components which form the most unique environments known to man. These components, or ecosystems, are themselves complex, however also fragile. Whether intentional or not, humans have negatively impacted the environment to the point where intervention and management is necessary to preserve or remediate these fragile ecosystems. One such ecosystem is located in the Southeast desert of California, the Algodones Dunes. Although sand dunes are not a typical or popular ecosystem, they do have structural dynamics, human affected biogeochemical cycles, a need and plans for management, and implications of species interactions in that management. Structural Dynamics The Algodones dunes is a band of sand dunes reaching as high as eighty meters that extend seventy five kilometers in length from the Colorado River in Baja California northwest toward Indio. They are eight kilometers in width at the widest point bordered by the Chocolate and Cargo Muchacho Mountain range in the east and the Coachella Canal in the west (Sweet, Nielson, Havholm, & Farrelley, 1988). The sand dunes are formed by Pacific westerlies and weather fronts which blow in a southeast direction. Because of this, the crescent dunes form with a more gradual windward face toward the northwest and a leeward face or sudden drop and slope facing the southeast (Sweet et al, 1988). Home to a highly...
Words: 1208 - Pages: 5
...beverage in the world after tea, carbonates, milk and coffee and it continues to be a popular drink. One of the important reasons is that beer is a drink with a pleasant flavor, an attractive color and clarity. To attain these characteristics, Membrane separation technology has become widely used in the food processing industry. The final filtration stage sets for a balance between allowing the passage of dissolved macromolecules that give the beer its flavor and functional properties while removing yeast cells and turbidity colloids and reducing the components that cause turbidity of the bottled beer. Moreover the potential of cross-flow microfiltration as a separation method for brewing is a subject of intensive...
Words: 1695 - Pages: 7
...| 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 - 1995 Solution: In order to find out the exact firm by analysing the financial structure of typical firms, first we need to separate those firms which have zero inventory turnover (A, B, F and H) from those firms which have zero debt ratio which in our case are (E, H and J) and we use the information to narrow down the possibilities of each firm. In this case there are three groups of companies: 1) Firms having zero inventory turnover. 2) Firms having zero debt. 3) Firms having all financial ratios given. 1) Firms having zero inventory turnover: Under the category of zero inventories, there are four companies. The nature of these companies show that they are not involved in any production, but they provide services to the people and from services they generate cash. Each one with the name and reason is mentioned below. Firm A. Commercial Bank: The financial structure of (A) firm shows that it has zero inventory turnover and high receivables collection period. Banks usually have a large amount of receivables because they lend money to the individual people and a company due to which the average number of days, which in this case is very high, requires to convert receivables into cash is very high. Its financial structure also shows that the firm has borrow money from outside to pay debt to its customers. Firm B. Advertising Agency: This firm has very high receivables and payables due to one reason or the...
Words: 1143 - Pages: 5
...Assessing a Company’s Future Financial Health SciTronics Inc. Case #1 Prepared by: Kyle Peck For: Babak Lotfaliei FIN423 MW:10am-11:50am 2/11/15 Table of Contents Company Overview 3 Fundamental Analysis 3 Asset Utilization 3-4 Liquidity and Leverage 4-5 Conclusion 5 Appendices 6-15 Company Overview My group was called upon to analyze the financial statements and performance of SciTronics Incorporated, a medical industry company that supplies high quality products to various corporations. Initially, after analyzing their balance sheet ranging from the years 2005 through 2008, the company has clearly progressed and the 2008 numbers look a lot better than those of 2005 (see Appendix D). To analyze this data, we used numerous sources of financial information that included the firm’s financial ratios, various business cycles, and their source of external financing as well. Fundamental Analysis One important number that was really impressive was the dramatic increase in SciTronic’s overall sales. Using the calculations from the ratios, SciTronics’ sales jumped up at an approximately 20.77% compound rate. Furthermore...
Words: 1024 - Pages: 5
...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
