Situation Statement Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s‚ Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently‚ the PC industry is facing inconceivable worldwide competition‚ and Dell is gradually losing their competitive advantages by using its direct model in critical business segments
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How and why did the personal computer industry come to have such low average profitability? The PC industry has started to develop fast in the 80 ’s when IBM launched its first PC series and later on when numerous small companies entered the market. PC is a new product and companies had to create the demand to it from the scratch. We shall apply the Porter ’s 5 Forces model to examine the PC market and see how forces of competition influence the profitability of the market players. (See Appendix
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availability‚ clouding uncertainties on Sepsis and Diabetes partnerships‚ need for raising immediate money‚ giving up market rights‚ Harpaz considered following three options in order to maximize firm’s value and reduce financing risks: 1) Venture Capital Round: Secure $10 million in three months amidst various restrictions‚ 2) Wait six months: $25 million valuation but greater duress if the deal fails‚ and 3) Angel Round: Lower financing with greater valuation‚ without any overtly preferential
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1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal‚ a project finance framework was employed.” Usually‚ project finance framework is used when the project has predictable cash flows‚ which can easily represent operating targets through explicit contract. When cash flows are certainty‚ the company can have
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Conquistador Beer Suggested Solution October 10‚ 2003 Approach to the Problem • Calculate a Demand Forecast for the Company. Then calculate Break Even Volume and compare them. • Demand Forecast = Industry Demand * Market Share for Conquistador Beer • BEV = Fixed Costs / (Price – Variable Costs) Calculation of Industry Demand • Method 1: Uses Tables A and B. Per capita beer consumption * population Population Per Capita Beer Consumption (gallons)** 33.1 gallons 49.6 gallons Industry
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significant overhead costs‚ are way beyond those gained by other companies in the division and the group as a whole. This should provide a sound basis for arguing your case for the move into America and Asia but the conservative nature of the Group Executive and your own Divisional Chief Executive make a careful and well prepared and argued case for such a strategic move an imperative. Consideration of alternative market entry strategies EPP has achieved significant growth to date through a combination
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just some ideas: Dell keep the competitive advantage by bringing assembly and distribution closer to its customers. Dell’s manufacturing‚ logistics and shipping strategies make it possible to customize computers for individual consumers at low cost and for low price. Days of inventory. Dell days of inventory is 7.11 in 2000 and 5.73 in 2001. These incredible numbers allows it to pass on component price declines faster than anyone else in the industry. Lean inventories help Dell benefit from falling
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Key Issue 2: Is $1b appropriate to enhance UST’s firm value and ultimately shareholder value? Higher leverage is very likely to create value for a firm considering capital structure change by exerting financial discipline and more efficient corporate strategy changes. Before evaluating whether $1b is value enhancing in quantitative measure‚ ability to cope with pre-requisite interest payment and potentially dividend payment (possibly dividend growth maintenance) should be considered. Required
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Personal Assignment 4 Case Study Ford Motor Company: Supply Chain Strategy Synopsis Teri Takai‚ Director of Supply Chain Systems‚ has been asked what sounds like a relatively narrow question by the company’s most senior executives: How should Ford use Internet technologies to improve the way it interacts with suppliers? Students quickly realize‚ however‚ that the question requires broad discussion and is surprisingly difficult. To answer it‚ Ford needs to think about relationships not only
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ABRAMS COMAPANY CASE 5-4 ABRAMS COMPANY Que. 1: Evaluate each of the concerns expressed by top management‚ and if necessary‚ make recommendation appropriate to the circumtences described in the case The Abrams case is about using profitability measures to evaluate profit centers. The case also reflects a long academic debate in the US-literature about ROI problems. In EU companies it is more common to evaluate PCs with Income measures like RI and EVA. This case covers the tree main problems
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