FIN 5439 Capital structure and risk management Case study #4: Sealed Air Corporation The following questions refer to Sealed Air Leveraged Recapitalization (A) case (Harvard case #9‐294‐ 122)‚ and they are meant to guide your analysis of this case. Please make sure your case write‐up addresses all of the questions. Your write‐up should be 4‐6 pages‚ plus exhibits (such as worksheets). It is due at the beginning of class on April 8th‚ 2014. Suggested readings that may enhance your understanding of this case are:
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more competitive. Sealed Air company is encountering a growing number of competitors in its field. Similar or alternative systems are now proposed against those of Sealed Air. These new systems are often cheaper but as argued by Sealed Air less effective concerning the protection they offer and therefore less cost-effective. A new company (GAFCEL) has entered the market with an uncoated product and is having success on the New York‚ California and Ohio market. Sealed Air will face further erosion
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To the question of whether Sealed Air should enter the uncoated bubble market‚ there are two possible results: If Sealed Air was to put uncoated bubble products into production‚ the sales might not be very satisfying because of the already crowded market of uncoated bubble products. The competition is fierce‚ and the many the consumers cannot tell the differences on quality‚ nor do they actually do the cost-savings mathematics. Price is their priority‚ so if Sealed Air’s uncoated bubble products
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Sealed Air Case Study Date:11/14/2011 Section:Monday Ziyu(Vivien) Gong A20269093 Wenxin (Chloe) Liu A20267862 Xinyun (Amy) Qiu A20275778 Yingqiu (Chris) Zhu A20272743 Chongliang (Leo) Zhuge A20266231 Ⅰ EXECUTIVE SUMMARY Sealed Air Corporation is the market leader in coated air bubble products in North America and even Europe. In 1981‚ the case outlined the most difficult business challenge: the rapid displacement of coated bubble by a technologically inferior yet inexpensive uncoated
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Case2: Leveraged Recapitalization Client: Sealed Air Corporation I.Executive Summary Founded in 1960‚ Sealed Air grew rapidly during its first twenty-five years because many products had strong patent protection. By the mid-1980s‚ the patent of air cellular had run out and competition was getting fiercer. The managers started to pay attention to manufacturing. Therefore‚ the Sealed Air launched World Class Manufacturing to promote manufacturing performance. After a year
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Sealed Air Case Comments Sealed air case is a comprehensive case that captures many issues that we have discussed in the marketing course. It is also one of the best selling marketing cases and I think for some very good reasons. Here are my comments on the case questions. Question 2: Sealed Air created value to its customers by building high performance (technical) product quality in its coated bubbles and by educating the customers about the benefits of coated bubbles through
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Sealed Air corporation’s (SAC) Freelance R&D practise was in line with the strategy of the company. Their primary goal was in innovation and diversification of their offerings. Hickey‚ CEO of SAC realised in his earlier days that SAC had promising opportunities outside the packaging market. And on top of it he realised that with the booming food industry there was a greater oppurtunity for SAC to come up with a product which will help the food processing industry in identifying and tracking
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Executive Summary Sealed Air has been the market leader in the coated bubble product segment. It is considering introducing uncoated bubble product lines as it is gaining acceptance as a cheap alternative to the coated bubble product. Sealed Air may not be able to maintain and improve the current market share just by offering the uncoated bubble product. Instead‚ Sealed Air needs to introduce new uncoated bubble products at competitive prices to maintain yearly sales growth and market share.
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Igor Petrusca 1. Describe the corporate culture at Sealed Air. What is its business model? How do they make money? From the very beginning the Sealed Air corporation established itself as a company seeking market leadership and fostering technological leadership. It was a company of “firsts”. In essence‚ its philosophy was based on the belief that innovation is a customer-generated process and that it brings about market leadership which in turn means greater and sustainable profits. That is why
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Sealed Air Corporation’s Leveraged Racialization (Team 1) 5. Was the constraint imposed on capital expenditures under the bank lending agreement good or bad for the company? Do you think managers will be able to successfully renegotiate this covenant? Having a limitation on the investment in fixed assets when the company was planning a drastic change of their manufacturing system could be very harmful. Even though Dunphy and Cruiskshank tried to look on the bright side and consider this an
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