Parmalat It has been named as “Europe’s Enron” – the legend that took down Italy’s milk selling company Parmalat and its controlling executives‚ American banks‚ audit firms‚ even politicians and 130‚000 of its helpless small shareholders after the discovery in the year 2003 of the $14 Billion black hole in the company’s finances. The company’s fraud was uncovered when the company failed to pay the cash to the bondholders. Summary: This discovery led to eight years of court cases in Europe
Premium Audit Calisto Tanzi Finance
HBS- Airborne Express Background Information Seattle based Airborne Express was the third largest express mail business in the 1990s. The product of two specialist airfreight carriers‚ Airborne Express began operations in 1968 and targeted businesses requiring regular‚ high-volume shipments of urgent items. Airborne maintained low cost operations by focusing on efficiency. We discuss how the express mail industry evolved throughout the 1990s and what Airborne did to remain competitive. How and
Premium Economics Deutsche Post Cost
Introduction Benton Textiles have developed a new process‚ which can apply a special finish to certain types of textiles. The subsequent analysis will discuss two of the key questions that every company faces when it introduces a new product: Which market should the company target? And how should the new product be priced? The alternatives for Benton is either to enter the higher priced market‚ to the lower priced market‚ or to combine the two and first enter the higher priced market and then move
Premium Price Costs Marketing
Case: Dell Computers (A): Field Service for Corporate Clients [HBS 9-603-067] 1. What are the key challenges DELL should be concerned with as it enters the large scale server market? Support service in server market is more critical than in personal computer market‚ especially when the server is a large scale one‚ since a problem in server even for a short time could cause serious problem in the customer’s business. Having realized the importance‚ competitors such as Hewlett-Packard and IBM
Premium Personal computer Computer
HBS Case: AQUALISA QUARTZ – SIMPLY A BETTER SHOWER. 1. (A) After spending 5.8 million developing the Quartz‚ the product is definitely worth the investment because (1) The Quartz is the product that answer directly to the customer needs and wants. Most consumers need and want the product that can fix the problems – poor pressure‚ fluctuations in pressure and tolerance in using. (2) Choosing a shower brand depends mostly on which brand plumbers are familiar to so with new technology of the
Premium Marketing Plumbing
Enron Case Study [pic] Part A: Problem Focused Analysis and Recommendations. 1. Brief Case Background. List key events‚ use timeline. Case Background At one time Enron was one of the world’s largest producers of natural gas‚ oil‚ and electricity. It also appeared to be one of the most profitable companies‚ taking shareholders from $19.10 in 1999 to $90.80 by the end of 2000. Enron’s top management answered to a Board of Directors whose responsibility was to question and challenge new partnerships
Premium Enron
Midland Resources 1. How are Mortensen’s estimates of Midland’s costs of capital used? How‚ if at all‚ should these anticipated uses affect the calculations? The cost of capital is the minimum acceptable rate of return for new investments in the corporation. Estimates of Midland’s cost of capital are used in many analysis within Midland‚ including asset appraisal for both capital budgeting and financial accounting‚ performance assessments‚ M&A proposals‚ and stock repurchase decisions. These
Premium Weighted average cost of capital Investment Finance
-MFS- 1. Does the MFS system have weak or strong pay-to-performance? What type of behavior does the MFS system motivate? Basically‚ culture of MFS is focused on teamwork and community so that MFS manages their employees very fair and its compensation system also reflects this characteristic. For sustaining this team –based culture of MFS‚ which don’t prefer star(anti star culture)‚ MFS assesses their employees to the ways that not only fund-performance(performance factor) but also contribution
Premium Hedge fund Assessment Educational psychology
1.i. Test Marketing Expense: These can be identified as sunk costs‚ using the with-or-without test. These costs were undertaken to determine whether the Super project was feasible‚ and would exist even if the project were deemed unfeasible. 1.ii. Overhead Expenses: Mr. Sanberg proposed to include these in the fully allocated method used in Alternative III. However‚ we believe that these expenses have already been attributed to the Jell-O line of products‚ and the data does not explicitly provide
Premium Net present value Internal rate of return Cash flow
Enron’s Questionable Transactions 1. Which segment of its operations got Enron into difficulties? * The fact that Kopper was appointed to Fastow and he was an employee at Enron was the first thing that got them into trouble. Another reason was that over 11 million was invested and it ended up not being invested at all. I believe these two situations ended up being the start of Enron’s problems. Enron also was not reporting the revenue for service correctly and his stock was paid by
Premium Enron Corporate governance Bond