Conch Republic Electronics 5
| 2011 | | Paris Graduate School of Management- IEMBA
MAL-10087
|
[corproate financila managmenet] | Assignment 1- Lecturer: Dr Lawrence |
Corporate Financial Management
2011
Assignment 1
Lecturer: Dr Lawrence
Question: Conch Republic Electronics, Part 1
Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company 's finance department.
One of the major revenue-producing items manufactured by Conch Republic is a personal digital assistant (PDA). Conch Republic currently has one PDA model on the market, and sales have been excellent. The PDA is a unique item in that it comes in a variety of tropical colours and is preprogramed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current PDA has limited features in comparison with newer models.
Conch Republic are now considering very seriously the development of a more sophisticated PDSA which would have all the features of the existing PDA but with additional features including cell phone capability and the ability to run different forms of productivity software desired by business, and other users including university students.
The capital requirement to develop this new sophisticated PDA was going to be quite significant. Management has accepted the fact that the financing of this new project would have to be made from existing cash resources and outside finance.
Consideration had also to be given in terms of the more appropriate business model to apply. Could the manufacturing of the new unit be made by an out source electronic
MAL-10087
|
[corproate financila managmenet] | Assignment 1- Lecturer: Dr Lawrence |
Corporate Financial Management
2011
Assignment 1
Lecturer: Dr Lawrence
Question: Conch Republic Electronics, Part 1
Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company 's finance department.
One of the major revenue-producing items manufactured by Conch Republic is a personal digital assistant (PDA). Conch Republic currently has one PDA model on the market, and sales have been excellent. The PDA is a unique item in that it comes in a variety of tropical colours and is preprogramed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current PDA has limited features in comparison with newer models.
Conch Republic are now considering very seriously the development of a more sophisticated PDSA which would have all the features of the existing PDA but with additional features including cell phone capability and the ability to run different forms of productivity software desired by business, and other users including university students.
The capital requirement to develop this new sophisticated PDA was going to be quite significant. Management has accepted the fact that the financing of this new project would have to be made from existing cash resources and outside finance.
Consideration had also to be given in terms of the more appropriate business model to apply. Could the manufacturing of the new unit be made by an out source electronic
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