Finance 4210 (Section 001) Case #13: Ocean Carriers Group H 1. It is expected that daily spot hire rates will decrease next year. The factors considered are the number of operating vessels, number of scrapped vessels, age, size and efficiency of vessel, cost of repair and maintenance, and market demand. Existing capesize vessels are relatively new, thus we do not expect a large reduction in capesize vessels due to the scraping of old vessel. Also, a large number of new ships will
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EasyJet: the web's favorite airline The case pertains to the growth and sustenance of EasyJet airlines, a low-cost carrier operating in the European skies. EasyJet’s concentration has so far been on low-cost airline services to the masses, and although it faces competition from other low-cost carriers as well as major carriers, it has been able to successfully sustain its business and turn around an initial loss into profits of £2,318,938 [exhibit 2]. EasyJet’s value proposition has been to offer
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Ocean Carriers Analysis Date: 8/29/2007 TO: MS MARY LINN CC: PROF. TOM MILLER FROM: RYAN DALE SEELKE RE: DECISION ON CAPE SIZE CARRIER PRIORITY: Ms Mary Linn, After careful cash flow analysis and a discount rate (WACC) of 9%, commissioning a capsize carrier for 25 years is the only appropriate option for our firm. However, if the discount were instead 10%, both options would fail the NPV test by yielding negative results. I make this recommendation after thorough analysis
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Dell Inc. Don’t bother asking computer giant Dell Inc. about the prolonged slump in the high-tech market — the company just posted a 16% increase in sales for its most recent quarter, the sixth straight quarter Dell has enjoyed a double-digit revenue gain. Even more impressively, the hike in sales was accompanied by a 21% increase in profit. All told, Dell expects to reach $40 billion for the year, a substantial improvement on the $32 billion in sales it had last year. The secret to Dell’s success
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a discount rate (WACC) of 9%, commissioning a capsize carrier for 25 years is the only appropriate option for our firm. However, if the discount were instead 10%, both options would fail the NPV test by yielding negative results. I make this recommendation after thorough analysis of estimated cash flow and with the desire that our required 15-year life span will be amended. With the expected 9% discount rate, commissioning a capsize carrier for 15 years and then scrapping it as is company policy
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The tanker family is known for carrying a wide range of cargo from gas and crude oil to alcohol and acids. The Tanker family include some of the world’s largest ocean going vessels.. At just under half a kilometre long, the world’s largest tanker is more than 4 times longer than the average football pitch. An oil tanker, also known as a petroleum tanker, is a commercial vessel designed for the transport of bulk oil. There are three basic types of oil tankers: • Crude tanker and • Product tanker
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lined up in groups of four it is possible to make effective use of a 40' x 32' space. Heavy cargo that exceeds the weight restriction on gantry cranes is handled by floating cranes. Since direct loading and direct delivery are the rule in such cases, loading and unloading are coordinated with the vessel's cargo handling schedule. Therefore it is necessary to fully coordinate matters with all concerned beforehand. In shipping the term Break bulk derives from the phrase breaking bulk Break
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well as suggested supplemental readings that may provide a broader conceptual context. Cases form the core of many modules but we also include readings from Harvard Business Review, HBS background notes, and other course materials. Click here to add the full list of materials to your library (you must be logged in as a registered user. Not registered? Sign up now.) 1. Overview of suggested content (HBS case unless otherwise noted) Title Author Product Number Publication Year Pages
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Ocean Carriers Case Study Q1. a). we expect the daily spot hire rates to decrease in 2001 and 2002 according to the forecast in exhibit 5. This decline in daily spot rates is also supported by the forecast in Exhibit 3 showing a decline in ordering bulk capsizes from 63 in 2001 to 33 in 2002. Spot hire rates tend to fluctuate depending on the highs and lows trading volumes in the market. So since according to the forecast the demand for Iron ore had a poor market outlook in 2001, the spot hire
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INTRODUCTION Tuong An Co., want to expand its business into India; thus; we need a detail plan to make our penetration into India market. When we do analyze about the Indian cultural and analysis, we find the information that is general in nature, focusing on product categories. Therefore, we will perform the next to parts “Market Audit and Competitive market analysis” and “Preliminary marketing plan”. In part III, “Market Audit and Competitive market analysis”, the data generated in part III
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