...Chanakya’15 Pre-process The journey of Bajrangi Group started as a supplier of wafers and namkeens to local brands. Due to the shore supply of that product they decided to make their own product line. The fame of taste reached to the whole Gujarat hence it was time to take over the whole Gujarat. Chataka Pataka Tangy Tomato Snacks happens to be all over Gujarat — present in almost every paan shop and organised retail outlet, but with no jumbo billboards screaming its delights. With simple ideas that may seem outlandish in this age of brazen marketing, Chataka creator Bajrangi Wafers Pvt Ltd has managed to fend off bigger players like LasyCo and Jagilram's in the Rs 600-crore Gujarat market. Bajrangi survives solely on word-of-mouth publicity. This publicity comes from the Gujarat-based snacks maker's ability to localise flavours. Bajrangi understands the palate of the consumer well. Indeed, Bajrangi products like Chataka Pataka, Ratlami Sev and Sing Bhujiya, among others, suit the tastes of a specific market. The company offers masala wafers to cater to the Gujarati palate, chaat masala for the Maharashtra market and a range of spicy snacks for Rajasthan. Here, it scores over Jagilram's, which too has flavours to cater to the North Indian palate, by a better understanding of the Gujarati consumer. Bajrangi's pampers the Gujarati's sweet tooth by keeping its khatta-meetha less spicy. Bajrangi‘s product mix is just right. Bajrangi’s share of the local potato and vegetable...
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...TABLE OF CONTENTS Executive Summary Problem (Issue) Statement 1 1 Data Analysis Key Decision Criteria Alternative Analysis Recommendations Action and Implementation Plan Exhibits Conclusions References 2 4 4 4 5 5 5 6 I. Executive summary Rural Bank XYZ Inc., (XYZ) is a newly incorporated rural bank which started operations on 14 February 2010. It has seven branches located in the province of Pampanga and Bulacan. Majority stockholder is the Arroyo Family Group owning 99.7 percent of the voting stock. The Bankis classified as “Very High Risk” considering its extremely unsound financial condition and the various unsafe and unsound banking practices noted in the previous and latest general examination. Conservatorship under Section 29 of R.A. No. 7653 (The New Central Bank Act) can no longer be considered an option for XYZ, since its liabilities exceeded its realizable assets and the Bank’s continuance in business would involve probable losses to its depositors and creditors. II. Problem (Issue) statement XYZ, with head office located at San Fernando, Pampanga, is a newly incorporated rural bank which started operations on 14 February 2010 following the consolidation of the Rural Bank of ABC, Inc. and Rural Bank of DEF, Inc. It has seven branches, five of which are located in the province of Pampanga (Mexico, Masantol, Bacolor, San Simon and San Luis) while the other two are in the Province of Bulacan (Pandi and Marilao). Majority stockholder is the...
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...XYZ Incorporated, Your Chief Financial Officer, Mr. Gabriel Isaacs, has come to me with questions about accounting issues related to your firm. In a recent meeting, he was told that he needs to potentially adjust the carrying value of his intangible assets for possible impairments in value. Carrying value must not be overstated or understated because this will cause it to show false amount on the balance sheet which would give misleading information. He was also told that the Goodwill booked on the Balance Sheet is not subject to amortization but must also be adjusted if necessary for possible impairment of value as well. Accounting for goodwill is not the same as accounting for other intangible assets. Unlike other intangible assets, it cannot be amortized. Amortization and depreciation are closely related. There is no lifetime for goodwill and a company can only receive goodwill if they have purchased a company for a premium. They can also develop goodwill with the types of services offered. Goodwill should be tested for impairment. Impairment is when the current carrying value of the amount of goodwill exceeds the implied fair value that is being reported. If the carrying value is overstated, then this will overstate the amount reported in the balance sheet and overstate total assets at the end of the period. With this, total net income will also be overstated meaning that this effects the income statement for that period as well. An impairment on goodwill needs to be reported...
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...What are the objectives? The objective of XYZ’s pharmaceutical division is to reach and maintain a growth rate in the double digits. The top management of XYZ is committed to vigorous growth in total sales and the creation of shareholder value. Their goals are to release other NME products within the next 5 years, especially in the cardiovascular therapy area and the immune disorder and inflammation franchise. What are the constraints? The time frame that it takes to research, test, approve, and market a new drug place a big constraint on the pharmaceutical industry. The approximate time of the total process is 12 years. John Smith stated that “… a good performance today is actually determined to a large extent by which decisions have been made 10 years ago.” Another constraint would be the probability of each drug advancing to the next stage. What are the risks involved? One risk involved would be the probability that each drug will advance to the next stage. These probabilities are very low, meaning that only a small percentage of drugs actually make it to the market for use. According to the report, on average only one in five drugs entering clinical trials is launched on the market. In addition, only one in five thousand developed compounds in the research phase makes it to the market. There are also cost risks. You must consider the cost to research the drug (billions of dollars) while also keeping in mind that the drug may never make it to the market. Additionally...
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...By walking through a set of financial data for XYZ, this assignment will help you better understand how theoretical stock prices are calculated and how prices may react to market forces such as risk and interest rates. You will use both the CAPM (capital asset pricing model) and the constant growth model (CGM) to arrive at XYZ's stock price. To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. Assignment Guidelines: •Find an estimate of the risk-free rate of interest (krf). To obtain this value, go to Bloomberg.com: Market Data and use the "U.S. 10-year Treasury" bond rate (middle column) as the risk-free rate. In addition, you also need a value for the market risk premium. Use an assumed market risk premium of 7.5%. 2.625% •Download the XYZ Stock Information by clicking the link. •Using the information from the XYZ Stock Information document, record the following values: XYZ's beta (ß)? XYZ’s current annual dividend? XYZ’s 3-year dividend growth rate (g)? Industry P/E ?XYZ's EPS 1. XYZ's beta (ß) = 1.64 2. XYZ's current annual dividend = $0.8 3. XYZ's 3-year dividend growth rate (g) = 8.2% 4. Industry P/E = 23.2 5. XYZ's EPS. = $4.87 •With the information you recorded, use the CAPM to calculate XYZ's required rate of return (ks). Under CAPM: Ks = KRF + ((market Risk Premium) Ks =2.625 + 1.64(7.5) = 14.93% ...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be...
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...Integrative Case Lynekka Clark Jack Welch Management Institute Dr. Verona Kennedy JWMI:505 December 14, 2014 Executive Summary This paper will evaluate the communication strategy of the fictional new CEO of XYZ global financial services firm, which has been negatively impacted by a national investment crisis and plans to release to its target audience and stakeholders, utilizing tools such as Mary Munter’s Audience Strategy. The stakeholders have been identified as the firm’s employees, customers, shareholders, and the financial regulators. The shared common concerns of this group are the financial health of XYZ global financial services firm balance sheet, and the plans to meet regulatory obligations and compliance, and the lessons learned from the national investment crisis and plans for risk management. In addition, it will discuss the recommendation of three areas that as the new CEO of XYZ global financial services firm needs to focus and apply to influence the values of the firm and prevent a future crises by creating a culture of candor, trust, and learning. Introduction Values are beliefs that people have about what is important or worthwhile to them. Values influence behavior because people seek more of what they value. Values therefore can be seen as the guideposts for behavior. An individual’s values are in large part, derived from the social environment in which he or she lives. For example, in Western democracies, life, liberty and...
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...Project Portfolio Management at XYZ Pharma Part 1- The objectives in the Project Portfolio Management include strategically organizing the importance of different issues within the company, focus more on the sales growth rather than the sales figure, and prioritize the research and development. The constraints that take place within the case are linked to the discovery of different drugs and the risks that follow. Also, John Smith mentioned lengthening and shortening the steps of developing a new drug; which plays a factor on the developing cost and will increase significantly. Another constraint is the generic competitors. In the article it mentioned that the generic drugs to the newly made drugs can be freely sold without clinical trials. The risks involved within XYZ Pharma are mainly associated with the cost factors. It is extremely expensive to spend money on the drugs that never reach the market. Each process takes years to get through and the percentage of drugs that make it through each stage decreases each time. Stated in the case study, on average only 1 in 5 drugs that enter the clinical trials are launched onto the market. Also, if a drug doe’s make it to be sold in the market, there is only a 30% chance the drug is successful enough to recover from the development costs to yield a healthy return. Companies must rely on a limited number of highly successful products to properly finance their R&D and companies in their recent years have only been successful...
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...Running head: XYZ PHARMECEUTICALS BUSINESS PROBLEM Business Problem: XYZ Pharmaceuticals University of Phoenix Introduction Good research has quantifiable metrics that can be used to prove a given theory or point. Good research practices are also necessary if one is to provide credible and professional work. This is why good research skills are so important and why XYZ Pharmaceuticals in Atlanta, Georgia needs to account for the following when determining research sources: 1) Independent research-also known as third party research that should be an objective study with no hidden agendas; 2) Quantitative Research studies needs to be measurable and provide quantifiable facts and not just opinion; 3) Qualitative Research is the collection of subjects and third party information that provides accurate opinions and data for a given subject; 4) Sample Size of research can give credence to the veracity of the claims based on study. Too small or too large a sample can throw off the analysis obtained from the study; 5) Variables: in most studies, there are certain variables that have to be accounted for. Some variables are uncontainable, but accurate data collection has to have variable standards that can be controlled; 6) Replication/Peer Review: the most credible studies have to be able to be duplicated by peers in the same field who lend their own authority to the validity and credibility of the experiment or endeavor. A group of experts that can replicate...
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...Summary: XYZ is concerned about the plant’s present production capability. The Vice President, Katherine Rally is contemplating three alternatives: 1) Full automation; 2) Semi-automatic; and 3) Doing nothing. She identified Capital investment, Annual Revenues, Useful life, and Salvage Value of the plants as random variables and noted down their respective probability distributions. The case requires developing a simulation of 50 sample points of Average Worth (AW) at the MARR of 20% and selects the most suitable alternative. Question-a: I used Excel Random Number Generation (RNG) function to generate 50 sample values for each random variables: Capital investment, Annual Revenues, Useful life, and Salvage Value according to their respective probability distribution, mean and standard deviation values. The results are reported in Appendix-A. The value of AW was then calculated based on PW values for each 50 set of data points for both alternatives. The mean and standard deviation values for both alternatives as follows: Alternative-A: Full Automation MEAN: $54,736 STANDARD DEVIATION: $27,420 Alternative-B: Semi-Automation MEAN: $56,491 STANDARD DEVIATION: $7,248 Based on the results, both alternatives will produce in near similar amount of AW. Under alternative-A, the mean value of AW is $54,736 while under alternative B, the mean value of AW is $56,491. However, the Standard Deviation is much lower in case of alternative-B i.e. to employ semi-automation. Because...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an indepth discussion...
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...Case Study#2 The XYZ Company Katharine Rally is the vice president of operations for the XYZ Company. She oversees operations at a plant that manufactures components for hydraulic systems. Katharine is concerned about the plant’s present production capability. She has reduced the decision situation to three alternatives. The first alternative, which is fully automation, would result in significant changes in present operations. The second alternative, which is semi-automation, involves fewer changes in present operations. The third alternative is to make no changes (do nothing). As a manager of the plant management team, you have been assigned the task of analyzing the alternatives and recommending a course of action. The capital investment and annual revenue for the first two alternatives are shown in the following table: |Alternative |Capital Investment |Future Sales |Annual Revenue | |A |$300,000 |Good |$250,000 | | | |Average |$100,000 | | | |Poor |$50,000 | |B |$85,000 |Good |$100,000 | | | ...
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...discovery and development is extremely risky, time-consuming, and expensive. Millions of dollars are spent in the R& D process and many of the drugs created do not make it past the Basic Research stage. The risks associated with low return on investment or no return at all on the investment pose a big risk for pharmaceutical companies. 4. What are your alternatives? The company can choose to allocate resources to other projects or services besides pharmaceutical drugs. There are possible lines extensions in the areas of cardiovascular therapy, immune disorder and inflammation franchises, General Practitioner products, as well as LCM and NME projects. 5. Information required for Project Portfolio Management and how can it be collected? XYZ needs all independent research and development projects including their cost. Technical success probability. Projected launch year, pre-launch cost, return on investment and...
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...1/9/2015 Procter & Gamble: Cost of Capital Procter & Gamble: Cost of Capital * Required Case Analysis! If the estimated cost of capital was "significantly lower than the expected return" of entering the new market, he fully expected the company to introduce its own brand of detergents, soaps, cleansers, and personal-care products by the end of 1990 --- What is your opinion on this statement? (Max. 50 words) * The CFO needed to be reasonably sure that the money invested will generate greater returns than the minimum level expected by investors/bondholders in order to go ahead with the plan Should P&G compute cost of retained earnings as part of the cost of capital? (Max. 50 words) * Yes. Since retained earnings form part of shareholder's capital (and consequently part of return expected from holding the share) it must be considered Why bond and stock markets are only reasonably effecient? (Max. 50 words) * Investors are subject to many biases such as confirmation, loss aversion, overconfidence biases and even the gambler's fallacy which may reduce the efficiency of the market. Should CORPOSTRAT try to reconcile the difference between its client and P&G or should it just report the findings and let the client interpret the result on its own? * https://docs.google.com/forms/d/12CbbCV-E6rEFBtAsVmVKGOh33wFJ9vsUS9-mol4YKoU/formResponse 1/7 1/9/2015 Procter & Gamble: Cost of Capital CORPSTRAT should directly report the findings as it is always good to have multipl...
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