Capital Budget - 887 Words

General Motors Sample Case Study Next Generation C hevrolet Instructions You have 1 hour and 30 minutes to complete the case below, which involves building an Excel model and preparing a written memo. You will walk through your analysis as part of the interview process. The GM team will ensure your case material makes its way to the proper interview room. By the end of the allotted time, you should: Write a memo in Word no longer than one page outlining your analysis of the case problem and your recommendation Be prepared to walk your interviewers through your Excel model and present your recommendation (you can use either the Excel or the Word document as back up for your discussion; no need to†¦show more content†¦Chevrolet has a storied history in the full-size sedan market. The first launched as a 1958 model year vehicle. In its , was the best-selling car in the United States. current 9th generation has market share of ~18% and consistently sold more than 100,000 units per year on average from 2008 to 2009, the latest full year of data availa ble. Property of General Motors Finance June 2, 2014 Page 1 General Motors Sample Case Study Assignment 1: Direct C ash F low A nalysis As an analyst in Operations Finance, your manager has asked you to create an Excel model with a direct cash flow forecast for the next generation using the information below. Prepare yourself to walk your interviewer through your Excel model and calculations. Assumptions: For simplicity, assume all cash flows occur at year end and there are no working capital requirements. 1. Development cycle (design and engineering of the vehicle before going to market) 5 year development cycle Investment in manufacturing equipment and tooling: $450M a. Investment Timing (15% of the total spend in 2010, 20% in 2011, 20% in 2012, 20% in 2013 and 25% in 2014): Engineering budget: $390M (timing same as investment spend) 2. Sales Assume product is launched the year right after the end of the development cycle Life cycle of the product: 5 years of sales after vehicle is launched Total market forShow MoreRelatedCapital Budget : Capital Budgeting Essay1838 Words   |  8 PagesIt is probably safe to assume that most households run on a budget and some amount of forecasting, as there are many individuals who might not have an unlimited supply of money. Decisions are made about paying household bills in relation to the income that has been generated. Then comes a point in time when one realizes a need to invest in a home improvement project, this results in an analysis of the finances such as, the expense and benefit of the project. Company’s do the same thing except onRead Morecapital budget 1831 Words   |  4 Pagesï » ¿Critically reflect on the importance of capital budgeting.   Why is this heated subject in many boardrooms? How does capital budgeting promote the financial health of an organization? How will you use the financial techniques you have learned this week to promote the financial health of your organization? A capital budget is very important for a business. It is a heated subject because a decision about capital budgeting can help the business to determine if the proposed investments or projectRead MoreOptimal Capital Budget995 Words   |  4 PagesOptimal Capital Budget ï  ® Finance theory says to accept all positive NPV projects. ï  ® Two problems can occur when there is not enough internally generated cash to fund all positive NPV projects: Increasing Marginal Cost of Capital ï  ®Externally raised capital can have large flotation costs, which increase the cost of capital. ï  ®Investors often perceive large capital budgets as being risky, which drives up the cost of capital. (More...) ï  ¬An increasing marginal cost of capital. ï  ¬Capital rationing Read MoreCapital Budget Recommendation1037 Words   |  5 PagesCapital Budget Recommendation ACC/543 Capital Budget Recommendation As a dedicated furniture maker and businessman, a clear understanding of the techniques used to assist in capital budgeting is important. There are several techniques used, each having advantages and disadvantages. Within this recommendation, the advantages and disadvantages of each technique will be briefly discussed. Additionally, discuss how each technique will assist in determining the desirable capital budget techniqueRead MoreWhy The Capital Cycle Affects The Operational Budget1525 Words   |  7 Pagesimportance of the capital cycle and why healthcare executives need to know and determine how the capital cycle impacts the operational budget. Within my paper, I will explain the capital standard approval process to include all the individuals involved in the process. I will discuss the essential characteristics of a financially successful organization, along with how healthcare managers should apply these traits when operating the capital cycle of their organization. Capital Cycle In orderRead MoreCapital Budget Process With Expansionary Versus Replacement1273 Words   |  6 PagesCapital Budget Process with Expansionary Versus Replacement This report is a comparative analysis of the capital budget process during making decision of expansionary versus replacement. With the objective it is the goal to maximize the wealth company and its shareholders. This process can include expansion or replacement or replacing them and which ones better show capital budgeting will help in processing the difference. Replacement decision concerns whether an existing asset should replaced byRead MoreCapital Budget1446 Words   |  6 PagesCases and Exercises for Value and Capital Budgeting Corporate Finance Academic Year 2012/2013 1. The treasurer of Amaro Canned Fruits has projected the cash ï ¬â€šows of projects A, B and C as follows (measured in e): Year 0 Project A Project B Project C Year 1 70, 000 130, 000 75, 000 Year 2 70, 000 130, 000 60, 000 −100, 000 −200, 000 −100, 000 Suppose the relevant discount rate is 12% per annum. (a) Compute the proï ¬ tability index for each of the three projects. (b) Compute the NPV for eachRead MoreCapital Budget Recommendation1135 Words   |  5 PagesCapital Budget Recommendation Managerial Accounting and Legal Aspect of Business/ACC 543 May 24, 2010 Capital Budget Recommendation Guillermo Navallez is the owner of Guillermo Furniture, a company thatRead MoreThe Cost Of Capital Budget1469 Words   |  6 PagesThe risk that the company puts itself in within their sector should also give an idea of the capital budget. A higher risk within a specific sector the more that there should be invested. The cause of this was a hurdle rate that was too low. Another point to address is the projects overall contribution to the firms borrowing power. What may occur is the cost of debt ratio to fluctuate with the cost of equity ratio. As the company continues to operate, the process needs to carefully dissect eachRead MoreCapital Acquisitions Budget509 Words   |  2 PagesThe capital acquisitions budget has a number of options available to it. There are a number of different elements that need to be taken into consideration, such as the state of the existing resources and the need within the community. This report will focus on the financial aspects only, however. The first potential acquisition is two garbage trucks to help handle collection as our countys population and business base expands. The trucks each cost $150,000 and have a useful life of 10 years. The

Leadership Style For 21st Century - 1477 Words

Leadership Style for 21st Century When we analyze the success of large corporations like Ford, General Electric and International Business Machines, it is evident that they had series of leaders who were visionary and believed in empowerment of people. When we analyze tough phases of a company or companies that had a fall and ultimate demise, we clearly see a linkage between failure of company and absence of effective leadership (Canwell, Dongrie, Neveras, Stockton, 2014). The successful organization had leaders who made right decisions at right time and implemented them strategically. The implementation part needs excellent human resources and the ability to lead to them to get the task done. While different situations may need different style of leadership, the sophisticated manpower fueled by technological advancements and globalization have made some leadership styles less effective and some leadership styles to be highly effective (Feser, Mayol, Srinivasan, 2014). This paper will discuss a tough situation faced in one of my former organization. The organization needed a different leadership style to tide over the falling sales and attrition. Three different leadership styles, their pros and cons, and the likely success in solving the problem will be discussed in this paper. The Crisis Within When an established multinational pharmaceutical company shows signs of early trouble, the sales and net revenue are falling, stock value is heading southwards and there isShow MoreRelatedThe Leadership Style Of The 21st Century1435 Words   |  6 Pagesmarket touting new theories and new styles of management that are proven to be successful. Even out of the three most common leadership styles, authoritarian, democratic and laissez-faire, the latter, is still considered a fad and too risky. Laissez-faire (french for leave us alone ) is a style where the workers have the decision making power. Even as recent as 2008 Samual C. Certo wrote â€Å"Supervisors are rarely, if ever, able to practice this style of leadership because the nature of the supervisorRead MoreDeveloping A Leadership Style For Fit 21st Century Challenges3025 Words   |  13 PagesDeveloping a Leadership Style to Fit 21st Century Challenges Kristin Hedstrom Erin Huerta Teresa Tezack James Gilner St. Johns River State College Developing a Leadership Style to Fit 21st Century Challenges Developing a leadership style to fit twenty-first century challenges involve a great deal of knowledge, and patience. There are different leadership styles among managers, and cultures. Two leadership styles are transformational, and transactional. There are many ways leadership has developedRead MoreChanging Hats: Incorporating Transactional, Transformational and Complexivist Leadership Styles into 21st Century Classrooms2960 Words   |  12 Pagesâ€Å"Organizing [a] new learning model is the work of the 21st century (Cookson, 2009, p.15). This is the challenge we are currently faced with as educators. Recent academic discourse has critiqued our current education system, claiming that we are left with the legacy of the industrial age which is â€Å"characterized by conformity, age cohorts, bells ringing to summon mass migrations and segregation of skills [that were] necessary for the workforce at that time† (We are the People, n.d.). This is aRead MoreDiscuss the Advan tages and Disadvantages of Some Common Leadership Styles and Evaluate How Modern Managers Can Best Implement Them to Deal with the Challenges They Face in the 21st Century.814 Words   |  4 PagesDiscuss the advantages and disadvantages of some common leadership styles and evaluate how modern managers can best implement them to deal with the challenges they face in the 21st century. Todays increasingly competitive, dynamic business landscape requires the ability to change, evaluate, and implement new courses of action (Bucic, Ramburuth and Robinson, 2010: 228-248). The importance of the leadership and its significant impact on the businesss performance , productivity of the organizationRead MoreInterview Questions For A Vice President Of The Marketing Division Essay814 Words   |  4 PagesThe following are proposed interview questions addressing issues such as the 21st business landscape, the role of the leader, leadership styles, the need to bring trust to the corporation, and globalization The 21st business landscape 1. Do you have the qualities of a successful 21st century business leader? The answer expected is â€Å"yes†, as the perfect candidate for the position should have the qualities of a 21st century business leader? 2. What are they? They include but are not limited to confidenceRead More To survive the 21st century we are go Essay1271 Words   |  6 Pagesï » ¿Ã¢â‚¬ËœTo survive the 21st century, we are going to need a new generation of leaders’ (Warren Bennis 1992). Critically discuss this statement using appropriate theory and relevant examples to support your answer. The twenty-first century has been a key period in the alteration of the dimensions of managerial and leadership change throughout the business world. A key development within this sector has been ethical leadership; this essay will examine the dimensions of ethical leadership, the disconnectionsRead MoreA Vision Of School Leadership858 Words   |  4 PagesA Vision of School Leadership in the 21st Century The responsibility of preparing today’s students for tomorrow’s future involves more than orchestrating the curriculum students learn and the teachers who teach it. It involves the ability to employ the leadership styles fluently based on the everyday demands of running a school (Goleman, 2000). Informed by both research and real-world application, the Wallace Foundation identified five key functions of a successful leader: â€Å"shaping a vision of academicRead MoreGalaxy Toys Case Study1613 Words   |  7 Pagesmanagement style helped to improve the procedures of toy assembly and shipping methods. Mr. Aldrin, started at International Shipping Company as a shipping clerk and then became the shipping Supervisor for International Shipping Company because of his capabilities to get the job done and his ability to plan daily work and provide detailed instructions to workers. Mr. Bart Aldrin planning, leading and providing detailed information to the workers allowed him to reconsider his management style andRead MoreLeadership for Healthcare in 21st Century Essay602 Words   |  3 PagesAs 21st century, there is a change in era technology thus the leadership style also must update in line with the current development. It same goes with the changes in leadership for healthcare in 21st century. Thomas H. Lee in Arroliga et al (2014) said that health care delivery systems must develop a new kind of leadership to reduce chaos and improve outcomes. In this century, there are working collaboratively where different organizational structure are combine in one team during operation inRead MoreGender And Leadership During The 21st Century Essay1330 Words   |  6 PagesGender and Leadership in Healthcare Administration in the 21st Century Introduction The fast technological advancement being witnessed in almost every part of the world has led to tumultuous changes in the healthcare systems and administration as well. Consequently, a lot of concerns have been raised about the quality and availability of visionary leaders in the healthcare institutions. In other words, there is a documented need for leaders with transformational leadership skills so as to help build

Marketing Myopia Case free essay sample

Marketing Myopia Case BY ank080 a recent case of marketing myopia TUESDAY, AUGUST 31, 2010 Brand Update : Can Ambassador be saved ? Recently the good old Ambassador was in the news that the brand owners Hindustan Motors is planning to relaunch [rejuvenate this heritage brand. Both the brand and company is in deep crisis with HM posting losses of Rs 43 crore last year and its networth declining by about 50%. The company plans to relaunch the Amby in a new look and is planning to entrust a design house with the task. The report also suggest that the new Amby will have a etro- look and will be in the price range of Rs 5- Rs 7 Lakhs. The new Amby will be a niche product. The interesting question is can this brand be saved with the new strategy ? From the report about the new Amby launch, it will be tough for the brand to regain its lost glory if the brand is going for a niche variant. We will write a custom essay sample on Marketing Myopia Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page According to Economic Times, Ambassador sells around 600 units per month in a market of 2 lakh cars/month. Ambassador is now in a rut which is its own creation. The brand is the classic example of marketing myopia. The company took the customers for granted and efused to change when the entire market changed. The brand did nothing when faced with competition from Tatas and Maruti. Instead of changing its core DNA, the brand relied upon cosmetic changes. When the brand needed a drastic revolutionary change, HM decided to get stuck with the old product. The current strategy ofa niche Amby is again a patch-up . This brand cannot survive on patch-up strategies. I dont think that the core brand Ambassador will revive with the launch of a niche high priced Ambassador. With the brand equity in shambles, ow can the brand expect consumers to pay a premium for the new Amby variant ? The high priced Marquee variant will work for iconic brand which are facing a decline. But Ambassador was not an icon. It was a market leader and consumers bought the car because they did not had a choice. Not because they were a die-hard Amby fan. Hence a high priced niche variant may not revive the sale of Ambassador. Secondly HM as a company is now relying its future on Ambassador which again is a flawed strategy. A weak brand cannot save a weak company. And a niche variant will at best give some life support and not survival. Another way to look at the current strategy is the transformation of Amby from a Ambassador, the company hopes to sell high-end variant and hence generate more cash. In that perspective, the launch of a high priced Amby make sense. But the question is whether the brand has enough equity to support such a variant. Brands like Beetle and Enfield revived because these brands had strong equity existing in the market even after its previous life. The relaunch re-ignited the existing goodwill . But such a goodwill does not exist for Ambassador. Ambassador is known for its pace and rugged nature . The product is also infamous for nagging problems and poor build quality. Still people bought because there was no choice. For such a product, the hope of renewal from a niche product seems too optimistic. Having said that, Indian market has seen consumers embracing products with exceptional quality and/or utility. So if the new variant is exceptional, there are chances of getting accepted by the market. Another interesting aspect of this issue is about the reliance of HM on Ambassador brand for its survival. Why didnt it think about an entirely new brand ? The trend in the Indian auto market is that multiple brands from different companies sporting the same engine. The engine becoming commoditized and design gaining prominence. In such a market why not come out with an entirely new brand with a proven engine ? Although building new brand is expensive compared to rejuvenation of old brand, in Ambys case, Ambassador comes with a lot of baggage and perceptions which is difficult to change. If Ambassador wants to stay relevant as a brand, what it need is disruption. Disruption should happen both internally and externally. The brand should go for radical redesign and more importantly it should disrupt the market. The current price to value proposition of Ambassador is negative compared to the competitors like Indica . So if Amby wants to play the volume game, it needs to offer consumer something they cannot refuse. A diesel car below Rs 4 lakh can ignite interest in the brand but given the cost scenario, such a task is virtually impossible. HM is again going for short-term strategy in pursuit of long-term results. For Amby, it seems to be the end of road . Related Brand Ambassador

The Harmful effect of television free essay sample

The Harmful Effects of Watching Television In a culture where most people have at least two TV sets in their homes and are obsessed with watching television, it is almost impossible to neglect pointing out the possible harmful effects of watching too much television. Television certainly has much to offer, and without a doubt is a great innovation. But when it comes to relying on it, whether to be informed or entertained, it can certainly affect people negatively. Here are the main harmful effects of watching television that you should always keep in mind Television is bad for your health Watching television means inactivity, and inactivity has been linked with obesity and heart disease. Do you think it is just a coincidence that in the West, where people are spending enormous amounts of time watching television, obesity and heart diseases in people of all ages are rapidly increasing? More and more studies are being carried out on the harmful health effects of watching television. We will write a custom essay sample on The Harmful effect of television or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page A recent research study conducted at the Harvard School of Public Health indicates that watching too much television can significantly increase the risk of developing obesity and type 2 diabetes. Not surprisingly, another study carried out at the University of Rhode Island found that prolonged television watching decreases viewers’ sense of self-efficacy in maintaining personal health. Television makes you dumb Another amazingly harmful effect of watching television is the fact it can hinder our ability to think. Having talking heads continuously giving us quick information, opinion, analysis and criticism for just about everything, allows us to stop using our critical thinking. In this way, we can be easily misinformed and manipulated. Certainly there are a few programs on TV that are educational and interesting, but the majority of   television programs are simply trash. And so we rarely find a program on TV that requires us to think. Television programming is designed in such a way so as to match our attention spam, and that is why almost all programs are 30 to 60 minutes long. In addition, television programs rarely dedicate the entire program to a single topic. Hence, not only television programs cannot provide any decent thought to stimulate discussion, but they present information in such a way that we cannot digest it properly. And so we can easily form opinions without allowing the information to be first filtered through our mind, and while we might think that we become more knowledgeable, in reality we become dumb.