Why did LTCM have difficulty raising its level of risk? What is Value at Risk‚ and what role did it play in the LTCM failure? In September 1997‚ the Fund had an annualized standard deviation of approximately 10.7%‚ which was significantly lower than the Fund’s long-run goal of 20% annualized standard deviation. There are several reasons to explain why LTCM had difficulties in raising its level of risk. LTCM structured the majority of its trades in a way that required minimal initial outlay
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Problem/Objective 1. Decisions/problem: The primary decision that Gilles Moyner‚ brand manager from Ford France must make is how to segment the new Ford Ka‚ a new small car that will be presented in the Paris Motor Show (1996). Within the understood that traditional size based market segmentation and alternatives segmentations did not work. GoldFarb Corporation is in charge of presenting Ford possible strategies. The objective is to develop a marketing strategy‚ targeting and segmentation‚ since
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HBS CASE: THE FASHION CHANNEL Answers by Chenghao Zheng (Chuck) 1. What insight do you get from the consumer and market data? TFC’s revenue for 2006: $310.6 million ($80 million from affiliate fees and $230.6 million from ad sales) Strength: the only network dedicated exclusively to fashion‚ with up-to-date and entertaining information broadcast 24/7 Weakness: no detailed segmentation‚ branding‚ or positioning strategy According to customer analysis: there are four groups of customers‚ Fashionistas
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Chad Ogle MGMT 620 HBS Case 9 Starbucks: Delivering Customer Service History In 1971‚ Starbucks started as a small coffee shop which targeted a specialized market of coffee purists. Howard Schultz‚ who later owned the company and initiated the high growth period‚ joined Starbucks’ marketing team in 1982. Main concept of Schultz marketing strategy was too make Starbucks “America’s third place” considering home and work the two other places where Americans spend
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Although Skilling was the one at the forefront when the Enron ship began to sink‚ the presence of many strong players all competing for individual power within the organization attributed to Enron’s downfall. Although Skilling came in fresh out of HBS ready to aggressively hit the ground running‚ it seems as higher management at the time‚ namely Lay‚ did not have the foresight to control
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Q1. How attractive is the video game console industry in 2008? The video game industry can be seen as part of the broader entertainment industry‚ which is a sector that involves most part of the population all over the world‚ especially in the developed countries. The more countries will develop‚ the broader the entertainment industry’s consumer base will become‚ with the consequence of greatly widening video game industry’s potential customers. More specifically‚ video game console industry has
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2010 [Type text] Emerging Company Finance FNCE 480 - Final Frank Kurupacheril [TRENDSETTER’S TWO ROADS] Trendsetter‚ Inc – a warehouse and distribution solution software company for clothing retailers is faced with the usual dilemma. They are running out of seed money that the founders contributed. Now they have received two term sheets from prospective VC’s. The ball is in the founders’ court who have to choose one after weighing pros and the cons. Contents Introduction .
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ENTERTAINMENT is an action‚ event or activity that aims to amuse and interest an audience of one or more people. It is the audience that turns a private recreation orleisure activity into entertainment. The audience may have a passive role‚ as in the case of persons watching a play‚ opera‚ television show or film; or the audience role may be active‚ as in the case of games. Entertainment can be public or private‚ involving formal‚ scripted performance‚ as in the case of theatre or concerts;
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Banc One Case Analysis Case Summary Banc One has a problem with the alignment of two of its important strategies: (1) rapidly acquiring profitable banks and (2) sustaining high returns while mitigating interest rate risk. Banc One has been very successful in acquiring banks‚ and much of this is done through the sale/transfer of Banc One’s stock. This strategy relies heavily on Banc One’s ability to maintain a high stock price. The second
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1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? Historically‚ the AES capital budgeting method primarily used the following assumptions: • All nonrecourse debt was regarded as good • Dividend cash flow were considered equally risky • Project was evaluated by the equity discount rate for the dividends from the project • A 12% discount rate was applied to all projects. The historical method is quite simplistic
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