...Kyle Fortin Case 12: VALUE LINE PUBLISHING, OCTOBER 2002 From a profitability standpoint, Home Depot created value, according to their 12.3% WACC found in exhibit 3. They are consistently creating value in all years (97’-01’) beings their ROC is higher than their WACC. Considering the Industry ROE average was 17.1% in 1997 according to Wikinvest.com, Home Depot was a little behind the game as far as creating value for their investors. Home Depot’s Gross Margin increased steadily each year, indicating higher profits, as well as their operating margin increasing to a high in 99’ and leveling out around 2001 due to the economic factors erupting after 9/11. Their NOPAT margin is higher than their biggest competitor lowe’s so they were consistently producing more returns, in conjunction with greater sales figures. Home Depot is operating on relatively wide margins compared to its competitors; its substantial growth rate is quite high compared to Lowe’s which is easily explained by their innovative business strategy. The Home Depot at the end of 2000 stands on good financial footing. Their net revenues have grown 208% between FY 1995 and FY 2000. Home Depot continues its market saturation strategy which consistently grows their net revenues. Home Depot’s growth in net earnings over the same period has been 284%. The money that the firm is retaining as profits is larger than the total amount being brought into the company, indicative of a company that is realizing economies of...
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...| | |Assumptions | | | |Please note that a number of assumptions have been made in response to this assignment. These include the size of the Belcher | |Rollins business and its operations, its international locations, its listings on international stock markets and its | |financial reporting process. Assumptions have also been made about the product development process and pricing. All of these| |are as realistic as possible, having been established through detailed research of the current market leader, Reed Elsevier, | |and its major competitors. | | | |As InScope is directly comparable to the Reed Elsevier ‘Scopus’ product, it has also been assumed that Scopus does not exist | |at time of the InScope launch. | INSCOPE: A NEW GENERATION OF RESEARCH PR PLAN...
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...Value Line Publishing, October 2002 Value Line Publishing is an investment-survey firm. Value Line is best known for publishing The Value Line Investment Survey, a stock analysis newsletter that is updated weekly and kept by subscribers to the print edition in a large black or green binder. The company provides information via an online web page with both free and paid content. After analyzing the financial ratios in case Exhibit 7 for Home Depot these are the points I detected about the operating performance. Home Depot has an overall profitability given growth in the market compared to sales and liabilities. Operational performance ratios measure how different aspects of a company’s finances are performing. The fixed-asset turnover ratio, operating cycle ratio and revenue per employee ratio each provide a different look into how a company is bringing in revenue, if the business is spending its money well and how efficiently it is using its assets and resources. Analyzing these ratios provides greater insight into the company’s finances than just studying accounting or other financial records. Furthermore, I would like to start with Home Depot’s five-year average for return on capital (ROC) 15.2%, which shows a positive company profit as a percentage of total company value and ownership; the return on equity (ROE) 16.8%, which indicates a positive combined total worth of the company. On the other hand return on equity was higher from 1998-2000; equity in 1997...
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...14$ billion between the two big players: 1. Time was established in the year 1922 and was in magazine publishing business. It was followed by Television Company and acquired American television and Communication Company. 2. Warner Brothers established in the year 1923, was into the film production. In the year 2001, the merger between these two giants was held with the aim “to create the world’s fully integrated media and communication company for the internet century in an all stock combination valued at $350 billion.” This is the largest merger in the history of America (Theierer Adam, January 11, 2010). The merger was carried so as to create the global media powerhouse. Then industry in which they were operating was expanding very fast. The merger was structured as a stock swap. The merger was correct as both the companies lacked the assets crucial for competing and both of them felt that they cannot alone develop the resources quickly so as to compete effectively. Both the companies perceived each other as the complementary strength which resulted in the merger. The companies were correct in their act so as to answer their major competitors such as MSN and Yahoo. AOL entered in the merger so as to sustain its position in the competitive environment. The decision to merge with the durable and profitable company with tangible assets, at the peak of capital value of AOL, was the perfect strategic decision. Time Warner wanted to access digital era by integrating with...
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...0 1 1 – 1 2 A CA DE M IC YEA R Copyright © 2002–2011 by the President and Fellows of Harvard College. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without permission of the Harvard Business School. Harvard Business School must reserve the right to make changes at any time affecting policies, fees, curricula, courses, degrees, and programs offered (including the modification or possible elimination of degrees and programs); rules pertaining to conduct or discipline; or any other matters cited in this publication. While every effort has been made to ensure that this publication is accurate and up to date, it may include typographical or other errors. If you have any comments about this guide, please contact rreiser@hbs.edu or infoservices@hbs.edu. Printed November 2011. Table of Contents Citation Conventions About This Guide.............................................................................................................................................. 5 Purpose of Citations .......................................................................................................................................... 5 What to Cite ...................................................................................................................................................... 5 Types of Citations: Footnotes, Source Lines, and Bibliographies ............................
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...9-411-097 REV: JULY 21, 2011 WILLIAM W. GEORGE Leading by Values: Sam Palmisano and IBM In 2002 Sam Palmisano became chairman and CE O of IBM, succeeding the legendary Lou E Gerstner. Gerstner, coming from RJR Nabisco and before that American Express, was sought out by the IBM board to replace John Akers as CEO when the c ompany was facing the greatest crisis in its s history; Gerstner took over IBM’s helm in 1994. IBM w as on the brink of bankruptcy, with many r shareholders pressuring management to capture near-ter m value by divesting pieces of IBM. At the time, Gerstner was viewed as one of the few executives w ho could save the compan . ny When Gerstner arrived on the scene, internal IBM te ams were considering splitting IBM into as many as 13 smaller companies, each of which could com pete as an independent en y. Ironically, in ntit the 1980s under the leadership of former CEO John Opel , IBM had fought off an anti-trust suit from the U.S. government seeking to break up IBM into mult iple companies because of its dominance of t the mainframe computer business. In this same time fram AT&T was ordered to separate its longme distance service, local telephone service, manufacturing a nd R&D into independent companies. Gerstner quickly concluded that breaking up IBM wo uld be a mistake of historic proportions. He l recognized that IBM had drifted from its roots of provid ing superior customer service and offering complete systems to its customers...
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...MSLO. Prescott delivered three reports to Jackson: one on the MSLO business model, one concerning the company’s core competitors, and one detailing consumer attitudes and behaviors (Herman, 2002). These three reports provided Jackson a complete overview on MSLO and it’s up to her to decide whether it’s favorable to invest in MSLO or not. The MSLO business model report mentioned that on October 19, 1999, MSLO went public. At the close of business day, MSLO reached a market value of $1.73 billion and a stake for Stewart worth $1.21 billion. MSLO described itself as a branded and highly integrated content company dedicated to helping people improve the quality of living in and around the home. MSLO produced original how to information and related product in seven core content areas such as home, cooking and entertaining, gardening, craft, holidays, keeping, and weddings. According to 60 Minutes, Stewart sold “that most indefinable and ambiguous of all products.” MSLO keys areas of strengths were in publishing, television, merchandising, internet and ecommerce (Neal, 2007). The company’s core competitor report defined MSLO’s competition based upon major and emerging players in the four business segments in which it operated. In publishing MSLO books, magazines, and related publishing products faced intense and multifaceted competition based on price, editorial content, and aesthetic quality. According to the company’s 1999 Annual Report, MSL magazine competed for advertising...
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...JOHN A. QUELCH HEATHER BECKHAM Culinarian Cookware: Pondering Price Promotion On November 6, 2006, the vice president of marketing of Culinarian Cookware (Culinarian), Donald Janus, and the senior sales manager, Victoria Brown, met to discuss whether or not the company should offer a price promotion for the company’s line of premium cookware in the coming year. These two executives had very different views on the value of a price promotion and the role it could play in the company’s marketing strategy. Janus expressed his opinion first: Brown knew that Janus was determined above all else that Culinarian should remain known as a high-quality product and an elite brand—“an American icon” was Janus’s term—and that all good things would flow from that status. He grew wary when he perceived, rightly or wrongly, a hint of a threat to that status. Still, Brown was obliged to be candid. She said: Do No I believe we need to be bolder with our price promotions. The number one complaint that my sale force hears from the trade accounts is the lack of consistent and meaningful price discount events. Providing a 30% discount promotion will increase commitment and support from the trade and will boost our overall brand awareness. It’ll also provide us with new customers who would otherwise not purchase because they feel the suggested retail is too high and encourage current customers to immediately purchase additional pieces. And yes, I think if the data in the consulting study...
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...Economics of Competitive Strategy Professor R. Preston McAfee Apple Computer Inc.: Digital Connectivity in the Age of the Maturing PC 8 April 2002 Group : Alp Buyukuygur Yuma Maris Amit Bhardwaj Brief Background Apple Computer is a major developer, manufacturer, and marketer of personal computers and peripheral products for sale primarily to the business, creative, education, government, and consumer markets. Apple also sells operating systems, utilities, languages, developer tools, and database software. California-based Apple Computer aims its colorful iMac (desktop) and iBook (laptop) computers at the consumer and education markets. It targets high-end consumers and professionals involved in design and publishing with its more powerful G4 portable and desktop computers. Apple also makes publishing and multimedia software, and offers Internet services such as Web page hosting. The company's FileMaker subsidiary makes database software. Once the world's top PC maker, Apple Computer has been relegated to niche status in a market dominated by "Wintel" machines (computers using Microsoft Windows software and Intel processors). Macintosh computers (Macs) forgo the Intel Pentium for processors made by IBM and Motorola. Apple has offered unique designs such as the colorful iMac that distinguish its computers from their competitors. Looking to attract customers into "the era of the Digital Lifestyle," Apple has conducted a marketing campaign that casts Macs as the centerpiece...
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...Evaluations”, Chair: Richard Yalch. Academic Positions Boston University, School of Management Associate Professor of Marketing & Dean’s Research Fellow, since September 2007 Assistant Professor of Marketing, March 1998- August 2007 Marketing Instructor, September 1997 to March 1998 Delft University of Technology, The Netherlands, Department of Product Innovation and Management Visiting Scholar, 2005 (November-December) University of Washington, School of Business Instructor, 1994-1997 Teaching Assistant, 1992-1994 Publications 1. Brunel, F., Utter, D. (2009). Phillips Foods, Inc.: Introducing King Crab to the Trade (pp. 20 pages). London, Ontario: Ivey Publishing, # 909A04. 2. Brunel, F., Utter, D. (2009). Teaching Note. Phillips Foods, Inc.: Introducing King Crab to the Trade (pp. 18 pages). London, Ontario: Ivey Publishing, # 809A04. 3. Susan Fournier, and Frédéric F. Brunel (2008), “Todos Somos Publicistas” [We are All Advertisers], Mercadotecnia, Expansión, May 26, pp. 103-104. 4. Toder-Alon, Anat and Frédéric F. Brunel, (2007), “Dynamics of Community Engagement: The Role of Interpersonal Communicative Genres in Online Community Evolutions”, in Consumer Culture Theory. Research in Consumer Behavior Series, Russ Belk and John Sherry (Eds.), Elsevier Ltd.,...
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...sources at the end of your work from articles, books, the internet and unpublished sources like your subject’s learning materials or a company document. It also discusses plagiarism. More details about other sources can be obtained from AIB. This document also covers how to present tables and figures and has an appendix about other style issues. Technical issues with Microsoft Word. Please use line spacing of 1.5 (or 2) lines, and 12 point Times New Roman font that can be selected with the Format/Font and Format/Paragraph facilities of Microsoft Word. Preferably, set the Tools/Language option to English (Australia) although students outside Australia could possibly use the language setting of their own country. Check your document using the Tools/Spelling and Grammar facility. Use the default margin settings of Microsoft Word (in the File/Page Setup facility, these margins are 3.17 cm for the left and right margins, and 2.54 cm for top and bottom margins). Use the left justification option, not centre or right justification. These Microsoft Word settings follow the standards in the Style Manual (2002). Table of contents BACKGROUND ....................................................................................................................................... 3 CITATIONS OF SOURCES ........................................................................................................................ 3 PLAGIARISM .................................................................
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...satisfying the customers. Top-performing managers recognize that having high-performing employees is essential for growth and survival in business (Harvard Business Review, 2013). Three out of four managers consider employee engagement as the key factor to the overall success of an organization (Harvard Business Review, 2013). Employees that are positively engaged in the company’s business have higher productivity and end up bringing more profit. It, essentially, engages the workers to perform for the best of the company (Harter, Schmidt, & Hayes, 2002). Employee engagement quickly became one of the holding pillars for Ritz-Carlton’s success. In the overall engagement ranking of groups that Gallup is researching, Ritz-Carlton is placed in the upper quartile compared to other companies (Robison, 2008). Results in employee turnover rates are also renown for the industry: 18% instead of the 158%, 136% and 129% industry averages for line, supervisor and management employees respectively (Robison, 2008). Their approach to the different segments of employee engagement is best described through the AON Hewitt Engagement Model. Aon Hewitt engagement model Aon Hewitt attributes improvements in employee performance to psychological and behavioral outcomes of engagement (AON Hewitt, 2013). The Aon Hewitt model examines both the individual’s engagement outcomes and the potential engagement drivers that are part of the organizational work experience (AON Hewitt, 2013). The model...
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...[pic] [pic]APA style From Wikipedia, the free encyclopedia Jump to: navigation, search |[pic] |This article may require cleanup to meet Wikipedia's quality standards. Please improve this article if you can. The talk page may | | |contain suggestions. (November 2010) | | | |Style guides | |ACS Style Guide | |AMA Manual of Style | |The Associated Press Stylebook | |The Chicago Manual of Style | |Turabian | |The Elements of Style | |The Elements of Typographic Style | |ISO 690 | |MHRA Style Guide | |MLA Handbook | |MLA Style Manual | |The New York Times Manual | |The Oxford Guide to Style/New...
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...VALUE LINE PUBLISHING, OCTOBER 2002 | | | | | | | | | | Financial forecast for Lowe's | | | | | | | | | | | | | | | | | | | | | | Fiscal year | ASSUMPTIONS | | 2001 | 2002F | 2003F | 2004F | 2005F | 2006F | | | | | | | | | | | Growth in new stores | | 14.5% | 16.9% | 15.9% | 13.8% | 13.0% | 13.0% | | Sales growth for existing stores | | 2.9% | 3.0% | 2.6% | 3.9% | 4.9% | 6.4% | | Total sales growth | | 17.3% | 19.9% | 18.5% | 17.7% | 17.9% | 19.4% | | | | | | | | | | | Gross margin | | 28.8% | 29.2% | 29.5% | 29.5% | 29.5% | 29.5% | | Cash operating expenses/Sales | | 18.3% | 17.7% | 18.0% | 18.0% | 17.7% | 17.5% | | Depreciation/Sales | | 2.4% | 2.4% | 2.4% | 2.4% | 2.4% | 2.4% | | Income tax rate | | 37.0% | 37.4% | 37.5% | 37.5% | 37.5% | 37.5% | | | | | | | | | | | Cash & ST Inv/Sales | | 3.9% | 3.9% | 4.1% | 4.1% | 4.5% | 4.5% | | Receivable turnover | | 133.5 | 133.5 | 133.5 | 133.5 | 133.5 | 133.5 | | Inventory turnover | | 4.4 | 4.4 | 4.4 | 4.2 | 4.2 | 4.0 | | P&E Turnover | | 2.6 | 2.6 | 2.8 | 3.0 | 3.2 | 3.2 | | Payables/COGS | | 10.9% | 10.9% | 10.9% | 10.9% | 10.9% | 10.9% | | Other curr liab/Sales | | 4.2% | 4.2% | 4.2% | 4.2% | 4.2% | 4.2% | | | | | | | | | | FORECAST | | | | | | | | ...
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...VALUE LINE PUBLISHING, OCTOBER 2002 Financial Forecast for Home Depot Fiscal year 2001 2002E 2003E 2004E 2005E 2006E Growth in new stores 17.5% 15.0% 13.2% 9.0% 7.0% 5.5% Sales growth for existing stores -0.4% 3.0% 4.0% 8.3% 8.3% 8.3% Total sales growth 17.1% 18.0% 17.2% 17.3% 15.3% 13.8% Gross margin 31.6% 32.0% 32.3% 32.4% 32.5% 32.5% Cash operating expenses/Sales 20.9% 21.0% 20.7% 20.8% 20.5% 20.5% Depreciation/Sales 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% Income tax rate 38.6% 37.6% 37.5% 37.5% 37.5% 37.5% Cash & ST Inv/Sales 4.8% 5.0% 5.0% 5.1% 5.3% 5.3% Receivable turnover 58.2 55.0 53.0 52.0 50.0 50.0 Inventory turnover 5.4 5.3 5.1 5.0 4.7 4.7 P&E Turnover 3.5 3.3 3.3 3.3 3.3 3.3 Payables/COGS 9.4% 9.4% 9.4% 9.4% 9.4% 9.4% Other curr liab/Sales 4.4% 4.4% 4.4% 4.4% 4.4% 4.4% Number of stores 1,333 1,533 1,735 1,891 2,024 2,135 Net sales 53,553 63,195 74,049 86,860 100,149 114,000 Cost of sales 36,642 42,972 50,131 58,717 67,601 76,950 Gross profit 16,911 20,222 23,918 28,143 32,549 37,050 Cash operating expenses 11,215 13,271 15,328 18,067 20,531 23,370 Depreciation & amortization 764 902 1,056 1,239 1,429 1,626 EBIT 4,932 6,050 7,533 8,837 10,589 12,054 NOPAT 3,028 3,775 4,708 5,523 6,618 7,534 Cash and ST investments 2,546 3,160 3,702 4,430 5,308 6,042 Accounts receivable 920 1,149 1,397 1,670 2,003...
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