...to 2012 and make some forecasts in order to aid investors in making decisions about investments between these two companies. Two methods of DCF valuation and relative valuation are used during the analysis. Firstly, we estimate FCFF with calculated WACC to determine the two companies’ stock price, comparing their actual current stock price. Secondly, we analyze P/E Ratio, P/S Ratio and EV/EITDA Ratio to make a comparison between the two companies and average industry. Our estimation will show that both Metcash and Woolworth are undervalued and suitable for investment 1. Overview : Metcash Limited(MTS) and Woolworths Limited(WOW) 3 1.1 Metcash Limited 3 1.2 Woolworths Limited 3 2. Metcash DCF valuation within FCFF approach 4 2.1 Weighted average cost of capital 4 2.1.1 Cost of equity 4 2.1.2 Cost of debt 4 2.1.3 Capital structure analysis 5 2.1.4 Effective tax rate analysis 5 2.2Estimation of FCFF 6 2.2.1 Growth rate expectation 6 2.2.2 FCFF and present value 6 3. Woolworths Limited DCF valuation within FCFF approach 7 3.1 Weighted average cost of capital 7 3.1.1 Cost of equity 7 3.1.2 Cost of debt 8 3.1.3 Capital structure analysis 8 3.1.4 Effective tax rate analysis 9 3.2 Estimation of FCFF 10 3.2.1 Growth rate expectation 10 3.2.2 FCFF and present value 10 4. Relative Valuation 11 4.1 Price Earnings Model (P/E Ratio) 11 ...
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...MANAGING INFORMATION QUESTION: For an organisation, or part of an organisation with which you are familiar: Analyse the information requirements of the organisation or part organisation, and prepare a proposal for improvement of the supply and use of information within the organisation of part organisation, identifying any new information systems required. You should include a business justification for your proposals and an implementation approach. CONTENTS MANAGING INFORMATION 1 QUESTION: 2 CONTENTS 3 GLOSSARY 4 INTRODUCTION 6 PART 1 8 TELCO A Seychelles’s Current Business Strategy 9 Overview of Current Information Systems 13 Value of information to support strategy 22 PART 2 26 SYSTEM RECOMMENDATION 27 PART 3 30 IMPLEMENTATION 31 PART 4 35 BUSINESS JUSTIFICATION 36 CONCLUSION 40 APPENDICES 42 References: 58 Bibliography: 59 GLOSSARY AOP Annual Operating Plan BU Telco A Business Unit TELCO A Telco A Seychelles GSM Global System for Mobile Technology INTRODUCTION Telco A Seychelles Ltd. was formed in 1989 when the Seychelles Government sold 70% of its shares in the Seychelles Telephone Company (GTC), to the international carrier, Telco A West Indies. The Telecommunications Act, established the same year, gave Telco A exclusive rights to provide telecommunications services in Seychelles. Telco A PLC (based in the UK) is the parent company of TELCO A West Indies whose principal operations are in the United Kingdom, continental...
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...2……………………………………………………………………………6 * Portfolio 3……………………………………………………………………………7 VII. Long – Short funds in Australian fund management companies…………8 VIII. Cost and Requirement of short selling…………………………………...……8 IX. Exhibit………………………………………………………………………………..9 X. Reference…………………………………………………………………….…….10 I. Long-Short Strategy Long-short strategy is a hedge fund strategy in investment, which involves the long positon in a stock and short position in another stock. A Long position simply means buying an undervalued stock in a lower price that are expected to get an increasing value in it. On the other hand, short position in a stock means borrowing some shares from brokers who also borrows the share from institutional companies, then sell it immediately in the market and buy those stocks back at a lower price later. The profit is the different between the initial selling price and the later price when buying it back. The ideal situation for the long-short strategy is the long position in a stock will increase and the short position in another stock will decrease. If this happened, the position will become equal size and the hedge is the optimal choice. II. Long Position in AHY.AX and Short Position in WOW.AX According to ASX200 list, Woolworth and Asaleo Care belongs to the same industry sector called Consumer Staple, which are used to design the...
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...Budgie Crashes, Dudley is a Dud In the spring of 1995, shortly before the close of Happiness Express’s 1995 fiscal year, a Wall Street investment firm projected a “precipitous” drop in the company’s earnings during fiscal 1996. The firm predicted that declining interest in the Mighty Morphin Power Rangers television program would quickly translate into falling sales of licensed merchandise featuring those characters, Joseph Sutton responded to that grim prediction by referring to another earnings forecast for Happiness Express released at approximately the same time by Donaldson, Lufkin & Jenrette (DLJ), a major investment banking firm. This latter forecast a sizeable increase in revenues and profits for Happiness Express during fiscal 1996. To support this second forecast, Sutton revealed that his firm’s backlog of toy orders in the spring of 1995 was nearly three times larger than the company’s backlog 12 month earlier. While admitting that sales of Power Rangers merchandise would likely decline in fiscal 1996, Sutton insisted that the company’s new product would more than make up for those lost sales. Bolstering Sutton’s point of view regarding his company’s future were the record operating results that Happiness Express reported in the late spring for fiscal 1995 of $7.5million was nearly double the figure reported the previous year, while its 1995 revenues rose to $60million, a 50% increase over the previous 12 months. Approximately one-half of the latter increase...
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...25743 Corporate Financial Analysis – Assignment 1 Recommendation Report: JB Hi-FI (JBH.AX) – Consumer Discretionary Name | Student ID | Lecturer Name | Lecture Time | Question | Nathan (Fortunato) Foti | 11049614 | Lorenzo Casavecchia | 6PM | 1 | Agnes Ho | 10427514 | Lorenzo Casavecchia | 6PM | 2 | Carrie (Shuhan) Chen | 11624261 | Lorenzo Casavecchia | 6PM | 3 | Nhan Doan Chi | 11814668 | Lorenzo Casavecchia | 12PM | 4 | Han Han | 11862618 | Lorenzo Casavecchia | 6PM | 5 | Table of Contents 1. Executive Summary 3 2. Industry Analysis 4 2.1. Competitive Forces 4 2.2. Industry Life Cycle 5 2.3. Potential Investment Risks 5 3. Ratio Analysis 6 3.1. Profitability 6 3.2. Liquidity 6 4. Earnings Management 7 5. Relative Valuation Analysis 8 6. References 9 7. Appendix 10 7.1. Profitability Ratios 10 1. Executive Summary This report aims to provide insight into JB Hi-Fi and covers an analysis of the Industry, Ratios, Earnings Management and Market Pricing. JB Hi-Fi Pty Ltd (JB Hi-Fi) can be classified to operate in various industries including online video games, video game and recorded music retailing, domestic appliance retailing, computer software retailing, online camera and camcorders. Their main competitors are Harvey Norman, Good Guys, and EB Games. From the report, the key competitive forces are highlighted and the potential risks of investing in the company are listed. The ratios covered in this report...
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...• Drop Ship strategy (Order were delivered by the shoe maker in beginning) • Capital Investment problem • Inventory Issue: - Lack of Information / Integration about inventory Status • Service level: - Priority of supplier / shoe makers to the Bulk orders but not to zappos • Conflict with Traditional supply chain management. • Drop and ship (Ship tracking issue) zappos not have information about the shipment dates • Branded shoe maker reluctant • Logistic distribution issue: - between shoe maker warehouse (operated manually, location) & Zappos & UPS • Strategic partnership with UPS for warehousing which was unsuccessful because the number of SKU was too much. Holding Inventory was too much in number ( bar code & Handler_ • Warehouse in California & then bought another in Kentucky ( using bar code strategy ) • Software to handle the inventory • VMI • Risk Pooling (website catalogue , • Replenishment of slow moving items by making partnership with 9M • Lead-time and transportation Drop and ship Supply Chain Management: Supply chain management is increasingly being recognized as the integration of key business processes across the supply chain. Supply chain management is described as a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations and at the right time, in order to minimize system wide...
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...principles of the organizational design as well as the alternative design forms. The stakeholders, both insiders and outsiders, and their behavior or relations of cooperation and competition suppose an analysis need that provides them of a huge importance. I also realize about the importance of the agency theory and the problems and remedies caused, improving the importance of efficient corporate governance. This need of a good organization is solved by the systems theory, ”Organizations are systems of interdependent activities linking shifting coalitions of participants; the systems are embedded in – dependent on continuing exchange with and constituted by – the environments in which they operate”. (Scott, 1998:28). The systems which formed the organization have a common target and are classified in three levels based on their relevance. Both, stakeholders and systems, needs an analysis in order to get success in our procedures and adapt the venture structure to the different organizational designs provided in the lectures. After understanding these concepts, the lectures focused on the relation between the main management factors (Vision and mission) and the drivers analyzed, providing goals and strategies to the organization. As important as the creative process is the analysis to know the organizational boundaries, which let the organization look for available goals based on the efficiency and effectiveness of their results. Finally the theory shows me the factors that convert...
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...that manage inventory well and still make a profit are Amazon.com and Zappos. Amazon.com is an online company that was founded by Jeff Bezos in the 90’s. Amazon.com sold books online during the early internet years. In a short amount of time it was a success. At the beginning, “Amazon.com carried only about 2,000 titles in stock in its Seattle warehouse”. (Amazon.com, Inc., 2015) Their inventory at that time was very simple compared to how it is now. To stay on top of the competition, Amazon diversified from just selling books online to other products like DVDs, toys, clothing, electronics and just about anything you can think of. Having multiple merchandise requires a strategic central location where the items can be shipped to the customer. Amazon houses their inventory in different states across the country. In order for them to have a variety of items to sell, they have other companies sell their products through the Amazon website and Amazon will fulfill the orders. Amazon has fulfillment centers that house the inventory of businesses that want to sell through Amazon.com. Amazon also makes sure the products that are hot sellers are always kept in stock to prevent a stockout. “Once it is time to get the products ready to ship, Amazon employees scour the warehouse armed with a handheld barcode reader, sorting items based on type, time of day for shipment and even potential...
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...S MAKING WAVES IN RURAL KENYA w 909A15 Sebastian Herrmann, Glenn Brophey and Denyse Lafrance-Horning wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2009, Ivey Management Services Version: (A) 2009-07-21 With the sun setting over the Rift Valley in Kenya, Sebastian Herrmann walked back to his tent with a head full of questions. He was at a loss as he wondered what kind of marketing campaign would ensure that every family that should use a WaterHarvester received one. If he could answer this question, he could see the potential to significantly improve the living conditions for many of the amazing people he had met over the last couple of weeks during his April 2007 visit. Just yesterday, the first prototype of the WaterHarvester...
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...Introduction 3 2. Definition of strategy 4 3. Vision , Mission and Top Objective of the Zappos.com 5 4. SWOT analysis of zappos.com 5 5. Porter’s 5 Forces Analysis Of Zappos.Com 7 6. PEST Analysis Of Zappos.Com 11 7. Porter’s Generic Model 15 8. Organizational Culture as A Competitive Strategy For Zappos.Com 19 9. Conclusion 23 10. References 24 1.0 Introduction The internet has changed the way of doing business. And the way consumers make their purchasing decisions. Because of the internet now we can see an increase in long distance purchases made by consumers as there are no geographical barriers. The one of the first companies to take advantage of this is Zappos.com. Zappos.com is an online shoe store that sells all kinds of men and women's shoes, from dress shoes to casual shoes, to athletic shoes, and the like. They also sell a growing range of accessories including designer handbags, belts, wallets, socks, and even diaper bags. In July 2009, the company sells its stocks worth $1.2 billion to Zappos.com. Since its founding in 1999, Zappos.com has grown to be the largest online shoe store. In this assignment we discuss how the company can use strategies such as SWOT analysis, 5Forces Analysis, PEST Analysis, Porter’s Generic model and the Company Culture to achieve success in global business. 1.1 About Zappos.com Headquarters: Las Vegas, Nevada CEO:...
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...the paradigm and that they see it from a finance position do they see the possibility of a behavioral implications. b) According to the rational paradigm, one that is interested in finance is well educated, has some predisposition towards the acclimation of wealth and is focused on the market. By the definition this means that they are rational and not behavioral. 2. The Structure of Scientific Revolutions triggered diverse reactions. Most “hard” scientists shrugged and went about their business. But many in the soft, or social, sciences “loved” the book, Kuhn says, perhaps because it offered a hope that they could attain the same level of legitimacy (or illegitimacy) as physicists or chemists. “Some of them even said, ‘Wow, all we have to do is to figure out what our paradigm is and enforce it.,’” Kuhn explains. Some philosophers, on the other...
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...Company History TD bank for more than 150 years, has been providing excellent customer service .They have a model of wowing the customer. This wow Factor has bin embedded in the the Td culture since the beginning the bank.The bank first opened in 1852 as Portland Savings Bank in Portland, Maine. Later on grew through many mergers and became Peoples Heritage Bank in 1983. The opportunity for expanstion came up ,as Peoples Heritage Bank, by going through some acquisitions, there growth grew deeper into New England and took the name Banknorth. In Cherry Hill, New Jersey-based company called Commerce Bank was turning heads and getting a lot of attention. The customers that they had already were turning into fans as America’s Most Convenient Bank. Commerce Bank was Founded in 1973,The founder Vernon Hill was a CEO of a well know food chain called Burger King. Commerce Bank rapidly grew over the next 35 years into Philadelphia. New york ,south florida and Washington DC. Since the CEO was from burger king he brought many of his traditions to Commerce. For example longer house and being customer friendly and giving them what customer want. In this model commerce , began winning new customers with WOW! service and convenience. Bank north, In 2004 began to caputure the attention of many other banks. In doing very well and being one of the top 10 banks in the Unites states. In doing this it grabbed the attention of TD Bank group of Toronto. TD bank group shortly after became a large...
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...◄Ticker WES-AU Wesfarmers Ltd Country: AUSTRALIA Industry: Consumer Services Sector: General Retailers Exchange: ASX - ALL MARKETS General Info as of 03/04/2016 (Currency: AUD) Price (Previous Close): Price - 52 Week High: Price - 52 Week Low: Median Price Target: Balance Sheet Statement (Currency: AUD) 40.37 45.00 36.65 41.44 Cash Left Latest Period at: YoY % Chg Cash & Short Term Investments Dividend Yield (Indicated): P/E (NTM): Shares Outstanding (MIL): Market Cap (MIL): 4.5% N/A 1,126 45,462 Preliminary results included (if available): No (20152014) 2015 2014 2013 2012 2011 -47% 1,139 2,133 2,836 2,467 2,088 -3% 392 403 813 529 361 -57% 747 1,730 2,023 1,938 1,727 Receivables - Net 43% 2,269 1,584 2,341 2,922 2,704 Inventories - Total 3% 5,497 5,336 5,047 5,006 4,987 Raw Materials -4% 112 117 103 92 97 Work In Process 77% 55 31 27 39 48 Finished Goods 3% 5,330 5,188 4,917 4,875 4,842 Short Term Investments Progress Payments And Other Prepaid Expenses N/A N/A N/A N/A 0 0 0 N/A N/A 168 133 92 Other Current Assets -27% 188 258 194 383 347 Current Assets - Total -2% 9,093 9,311 10,586 10,911 10,218 Long Term Receivables N/A 0 0 58 226 480 Investments...
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...Table of Contents 1.0 Executive Summary 2 2.0 Introduction 3 3.0 Brief Description of the Company 4 4.0 Analysis of Customer Relationship Marketing Strategies 5 4.1 The Value Proposition of Ritz-Carlton 5 4.2 The Concept of Experience Economy 6 4.2.1 The "wow effect" of the Company 6 4.3 Four Tier Customer Pyramid 7 4.4 Customer Relationship Management 8 4.5 Customer Complaint and Gap Model 9 5.0 Conclusion 10 6.0 Recommendation 11 7.0 References 12 1.0 Executive Summary The purpose of this report is to analyze the relationship marketing strategies by selecting one service organisation from certain industry and suggest five recommendations for the service organisation to improve its relationship marketing strategies. The introduction of this report started with the introduction and brief description of organisation about the history, objectives, achievements and competitive advantage. The body of the report will be the analysis of the customer relationship marketing strategies of the organisation. This part will explain about the value proposition of the organisation, followed by the concept of the experience economy and development of "wow effect". After that, application of the four tier customer pyramid will be discussed and also analyze how the organisation conducts its customer relationship marketing to build a loyal customer base. At the end of the body part, the processes that the company handle its customer...
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...Human Resource Management Individual Report January 2013 Introduction Managing Human Resources effectively has become vital to organizations within the modern and fast paced business environment. Today’s market demands knowledge innovation and trust more than mere comparative analysis of sales/services and market share, and the hierarchy of the centre and periphery model is evolving into a different paradigm. Human Resources specialists are more important in business strategies today as there’s a change in market dynamics; more so in the present economic situation of a global recession and downturn across industries as economies around the world are globally connected and interdependent. An organization with performance driven HR planning and development practices distinguish itself from competitors and brings quality & loyal workers who are committed and passionate about the success of their organization. In order to understand the concepts and HRM strategies/practices learned in lectures better, I have chosen the company that has ranked 1st on ‘100 Best Companies to Work For’ list of Fortune (a well-known international business magazine) for 2007, 2008 and 2012. , based in Mountain View, California, Google is the world's most popular search engine. The company started out of a garage in 1998, has generated wealth faster than any company in history and now dominates the worlds’ information industry. Currently, Google has more than 30,000 employees worldwide...
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