Conrail G455: Corporate Restructuring Team 7 1) Why does CSX want to buy Conrail? In an industry beset by limited options to consolidate domestic rail traffic‚ CSX looked at Conrail as an avenue to increase market share and gain access to the North East rail network. With air travel‚ road travel and trucking taking an increasing share‚ significant revenue growth became difficult. As Conrail became profitable‚ Congress explored ways of privatizing it‚ giving CSX an opportunity to acquire Conrail
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BUSINESS AND GOVERNANCE MANAGEMENT ACCOUNTING PROGRAM IT 2 / ISM 413 – CASE ANALYSIS FOR PREFINALS Guidelines: 1. The Case Analysis for the Prefinal Term will be done in groups‚ composition of which is the same with the group composition during the Midterm Case Analysis. 2. Because of the group’s composition‚ the case analysis will have two parts: (1) the film analysis‚ and (2) the minicase analysis. 3. In the Film Analysis‚ the group will choose between (1) Anti Trust‚ (2) Swordfish‚ and (3)
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Consolidated Rail Corporation 1. CSX wanted to merge with Conrail‚ because the consolidated company would have more than $8.5 billion in rail revenue and almost 70 % of the Eastern market. Gain in Operating Income from Cost Reduction would bring additional $370 million by the year 2000. Total gain from revenue increase would result in additional $180 million. And from the operating income would reach $550 million. Another important point in CSX-Conrail merger is the better competitive position in both long-haul
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Perspective: Conrail shareholder. 1. Why does CSX want to buy Conrail? How much should CSX be willing to pay? Some of the reasons why CSX wants to buy Conrail are‚ to increase the consolidation in the Railway industry. Further consolidation typically means lower cost for the consolidators fx because economies of scale and synergies and …. A consolidation also results in lower competition inside the industry‚ which typically follows with higher‚ or at least not lower‚ prices and therefore higher
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Case Analysis 1. Receiving a Holiday Gift 1. For the first case‚ it is clearly stated that a supplier sends a basket of expensive food stuffs to our home during Christmas. By applying principle of love we would be kind enough to appreciate the basket of expensive foodstuffs given to us. We would thank the supplier for that beautiful card and gift given to us for Christmas. After appreciating the token we would ask him the reason and motive behind such an expensive foodstuff delivery. And
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CASE ANALYSES by Pamela Hubbell Cases are detailed descriptions of real management situations. In the Case Analysis your objective is to analyze the management problem and make a recommendation for solving that problem. By applying concepts to actual cases‚ you improve your ability to think analytically when identifying problems and creating solutions. Preparing the Case Analysis There are four basic steps to follow when preparing a Case Analysis. However‚ because you will encounter a
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purchase a course packet which includes cases and readings to be used in class. Assignments and grading: Your final grade will be based on: 1) Senior manager case analysis (Group Project) 40% 2) Exam 20% 3) Reading logs 20% 4) Individual assessment 10% 5) 10% Factor 10% Senior Manager Case Analysis (30%) This assignment is designed
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Organisational Behavior Case Analysis: Dave Armstrong (A) Case Summary: This case is about Dave Armstrong‚ a 29 year old second year MBA student of Harvard Business School. Immediately after his graduation from a small liberal arts college in Texas‚ he started working for Thorne Enterprises as a computer Programmer. After eighteen months in the job‚ he quit to go into life insurance business in Amarillo. He applied to Harvard Business school but hadn’t considered what he would do‚ once accepted
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Bidding-War Context Copyright ©2002 Ian H. Giddy Corporate Financial Restructuring 3 Case Study: The Acquisition of Conrail Why merge Conrail and CSX? How was the CSX offer structured? How was Conrail’s resistance to an unfriendly bid structured? How would you‚ as a Conrail shareholder‚ react to the offer? What’s Conrail worth? Copyright ©2002 Ian H. Giddy Corporate Financial Restructuring 4 Gains from Conrail Acquisition? Rationale: Firm A should merge with Firm B if [Value of AB > Value
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Week 6 Case Analysis MKTG 301 1. Harris told Houston that he needed a couple of weeks to think about his proposal. How should Houston handle this? Harris is using what is called a time objection also known as stalling technique. In this particular case study Harris already has the need fulfilled by a different supplier and while they have had a few late deliveries Harris need to determine if it worth going through all of the work to get set up a new vendor. The time objection is often
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