BUS 225 Southern New Hampshire University Diversification Decision Presentation

Description

Scenario

Your presentation to the leadership panel of your company was well received. Now you must create a presentation for a wider audience—stakeholders from inside and outside the company—and include your decisions and recommendations, which were approved by the leadership panel. Remember that your presentation must convey professionalism and be visually appealing as well as informative.

Directions

Create a presentation of your research and data findings from Project Two including your decision and rationale.

  1. Construct a professional business presentation for internal and external stakeholders.
    1. Identify your key message to both internal and external stakeholders.
    2. Illustrate your key points using visualizations.
    3. Tell your story.

Specifically include the following in your presentation:

  1. Communicate your decision about diversification based on your analysis of the data and research.
    1. Use visualizations to tell the story of the (quantitative and qualitative) data.
    2. Determine the likelihood of success based on the data and research collected.
    3. Discuss the impact that moving to the new industry will have on the organization and its internal and external stakeholders.
  1. Detail your recommendations for moving forward.
    1. Summarize findings of the research performed.
    2. Include research conclusions and reasoning.
    3. Describe the rationale behind your recommendations.

What to Submit

To complete this project, you must submit a Powerpoint presentation of 10 to 15 slides including speaker notes. Sources should be cited according APA style.

Unformatted Attachment Preview

BUS 225 Milestone One Template
Executive Summary
January 24, 2021
Description of Problem
This report was prepared in response to the growing need to diversify our product portfolio to take
advantage of commercial opportunities in other industries. In recent years, the financial outcomes for ABC
Engines
Ltd
have come
under
increasing
pressure
because
of
the
shifting
business
environment. The weakening financial performance in the automotive industry requires a re-examination
of the automotive industry, determinants of success, and business opportunities that might exist in
alternative industries. This executive summary highlights the automotive industry, market trends, and
compares these market conditions with the U.S telecommunication industry.
Description of the Current U.S. Automotive Industry
The U.S Automotive industry boasts one of the largest automobile markets globally. Overall, the U.S
automotive industry ranks second in the global market for production and sale of vehicles. The industry is
dominated by major manufacturers with the FCA, General motors, and Ford accounting for over 50% of
the market share (Abolhassani et al., 2019). The three companies produce significantly more vehicles,
procure more parts, and invest in research and development at a greater pace than the remaining industry
players.
The light vehicle sales topped 17 million in 2019 accounting for over 97% of the total vehicle sales in the
market. This was the fifth year in a row when sales surpassed or reached 17 million units. In the same year,
the automobile industry contributed 2.7% of the national GDP translating to approximately $545 billion.
However, the seemingly strong performance in 2019 was in fact a drop of 1.3% on a year-to-year
basis (Abolhassani et al., 2019). 2018 recorded the highest sales in recent years extending robust growth in
the industry over the past decade.
The industry is projected to experience a significant drop in demand for motor vehicles over the next few
years as a result of the coronavirus pandemic. However, a steady increase in the demand for electric cars is
expected to drive demand and spur industry growth in post-Covid-19 economic conditions.
Current Automotive Market Trends
The U.S automobile market trend is shifting towards electric and hybrid vehicles. While gas-powered
vehicles remain the overwhelming majority on the roads, environmental concerns have contributed to the
growing shift in the demand for electric vehicles. In 2015, the electric vehicle market share stood at 0.5%
of the overall automobile industry (Krasniqi & Hajrizi, 2016). By 2019, this market share had grown to 3%
indicating the growing interest in renewable energy. Tesla Motors and General Motors are some of the
leading players in the electric vehicle sector driving it through research and development.
Besides the trend towards renewable energy, the U.S automobile industry has witnessed a trend in
technological adoption. A significant percentage of the market that is showing interest is semi-autonomous
cars. Self-driving vehicles exploit artificial intelligence to move from one region to another with minimal
driver intervention (Krasniqi & Hajrizi, 2016). The market is also shifting towards larger cars with more
legroom for comfort. Ultimately, consumers are more interested in safety over and above any other feature
of an automobile.
Description of the U.S Telecommunication Industry
The U.S telecommunication industry is highly competitive. The industry has recorded substantial growth
over the past decade powered by discoveries in cellular connectivity and a boom in smartphone
technology. Major industry players include Verizon, AT&T, T-Mobile, and U.S Cellular. The industry
revenues for 2020 were estimated at $581 billion with the transition to 5G networking expected to provide
a strong impetus for economic growth (Kalem et al., 2020). Full implementation of 5G networking is
2
anticipated to create new opportunities in the industry and to provide a bedrock upon which other industries
will thrive post-coronavirus pandemic. The merger between T-Mobile and Sprint in April 2020 caused
seismic disruptions in the industry. The resulting T-Mobile U.S Company enjoys a greater customer base
propelling it to the second largest telecommunication company after Verizon. The 2020 third-quarter results
showed that T-Mobile U.S had generated revenues of $19 billion representing a 45.1% increase on a yearto-year basis (T-Mobile Q3 Results, 2020).
Current Market Trends in the Telecommunication Industry
The telecommunication industry experiences tremendous changes spurred by information technology. The
U.S telecommunication industry is in the middle of the 5G phenomenon as the major trend shaping
industry practices and consumer expectations. Consumers are most interested in ultra-low latency,
enhanced data sharing speed, and improved efficiency (Kalem et al., 2020). However, consumers are also
persuaded by data-protection abilities in the middle of increased broadband services and the proliferation
of the internet of things (IoT) devices. Video streaming services and online-based gaming experiences are
some of the services that will drive consumption as well as competitiveness in the foreseeable future.
Appendix A
Explanation from Porter’s Five Forces Analysis of the Telecommunication Industry
Porter’s five-force analysis indicates that the rivalry among existing competitors is high. Several industry
players are offering similar products and services. The profitability margins are small making it essential
to compete based on customer volume and technological efficiency (Kalem et al., 2020). The exit barriers
are also significantly high because of the fixed costs involved in establishing a company in the
industry. However, the threat of new entrants is low because of the costs involved in establishing and
running a telecommunication company. The bargaining power of buyers is also moderate because of the
limited number of companies from which customers can choose to subscribe. However, the cost of shifting
from one firm to another is low granting buyer’s moderate leeway. However, the ability to influence
3
outcomes is also limited. The threat of substitute products is moderate in the telecommunication
industry (Kalem et al., 2020). The uniqueness of communication services such as voice and data
sharing provided
by
the telecommunication firms makes
the
threat
of
substitute
products
minimal. Similarly, the power of suppliers is moderate. Firms can purchase raw materials from several
suppliers. If materials from one of the suppliers are not suitable, it is easy to shift to another supplier because
of the low switching costs.
Appendix B
Summary of Findings from Porter’s Five Forces Analysis Comparing Both Industries
A comparative analysis of the U.S automobile industry and the telecommunication industry show
disparate commercial opportunities. Growth in the telecommunication industry is on an upward trend
while the automobile industry has recorded negative growth over the past two years. The transition from
4G to 5G networks promises to create numerous business opportunities that ABC Engines Ltd can exploit
with a successful strategic marketing plan. Although competitive rivalry is high, the low threat of new
entrants negates this threat substantially. ABC Engines Ltd. should proceed to take advantage of the
business opportunities in the telecommunications industry.
4
References
Abolhassani, A., Harner, E. J., & Jaridi, M. (2019). Empirical analysis of productivity enhancement
strategies in the North American automotive industry. International Journal of Production
Economics, 208, 140-159.
Reimers, J., Dorn-Gomba, L., Mak, C., & Emadi, A. (2019). Automotive traction inverters: Current status
and future trends. IEEE Transactions on Vehicular Technology, 68(4), 3337-3350.
Krasniqi, X., & Hajrizi, E. (2016). Use of IoT technology to drive the automotive industry from
connected to full autonomous vehicles. IFAC-PapersOnLine, 49(29), 269-274.
Kalem, G., Vayvay, O., Sennaroglu, B., & Tozan, H. (2020). Technology Forecasting in the Mobile
Telecommunication Industry: A Case Study Towards the 5G Era. Engineering Management
Journal, 1-15.
T-Mobile Q3 Results. (2020). T-Mobile Crosses 100 Million Total Customer Milestone and Raises
Second Half 2020 Financial Guidance across the Board with Strong Third Quarter 2020 Results.
5
Appendix A
Appendix B
6
Graphical Representation of Industry Data
Findings and Decision Modelling
A Presentation By :
Student’s Name:
Instructor’s Name:
Course :
Date:
Sales in NAFTA Region
Current U.S Automotive Industry: Sales by Fuel
Type
U.S Automotive Industry: Trends by Fuel Type
Trends in customer demands such as vehicle
safety, extra features, and technology
Source: https://www.ericsson.com/en/blog/2020/12/consumer-trends-automotiveindustry-2020
Trends in the body types of vehicles sold
(SUVs, trucks, sedans)
Trends in the U.S Telecommunication Industry
Expected Growth areas
Sales by Products/Services and Customer
Demands
Industry Data Summary
• It is time to divest from the automotive industry because of declining returns
• The automotive industry performance is on a decline compared with the
telecommunication industry
• The future of automotive industry is in the production of electric and hybrid
vehicles
• The telecommunication industry is currently on a decline. However, industry
projections indicate strong performance over the coming years.
• The future of the telecommunication industry is in data services.
Rational Decision Making
• Decision based on objective facts void of sentimentalism
• It is a multiple-steps analysis involving problem identification, evaluation of
alternative solutions, and selection of best course
• Suitable in high-stakes decision-making process.
The Intuitive Decision-Making Model
• Decisions made on the basis of perception, sentiments, instincts,
and feelings
• No conscious thoughts, rationale or evidence is used to determine
the course of action
• Associated with flawed information and insufficient consideration
of alternatives (Intuitive Decision-Making, n.d).
The Recognition-Primed Model
• Decision process involves three-step problem-solving techniques:
• Experiencing problems
• Evaluating the situation
• Implementing decisions.
• Preferred where there is insufficient amount of information to cause indepth analysis of the problem at hand.
Choice of Decision-Making Model: Rational
Decision Making
• Rational decision-making is appropriate for this report
because:
• It fosters application of reliable facts
• The amount of costs involved in investing in the telecommunication
are huge requiring rationalizing all facts.
• The method allows for selection of the best course of action from a
range of potential courses of action (Chi, 2018).
References
•
Intuitive Decision-Making. (n.d). When is intuitive decision making beneficial? Decision Innovation. https://www.decision-makingsolutions.com/intuitive_decision_making.html
•
Chi, C. (2018). Rational Decision Making: The 7-Step Process for Making Logical Decisions.
https://blog.hubspot.com/marketing/rational-decision-making
•
The Recognition-Primed Decision Model. (n.d). Free Management Books. http://www.free-managementebooks.com/news/recognition-primed-decision-model/
•
Libby, T. (2015). SUVs pass sedans as most popular body type in US auto market. HIS Markit. https://ihsmarkit.com/researchanalysis/q22-suvs-pass-sedans-as-most-popular-body-type-in-us-auto-market.html
•
Reimers, J., Dorn-Gomba, L., Mak, C., & Emadi, A. (2019). Automotive traction inverters: Current status and future trends. IEEE
Transactions on Vehicular Technology, 68(4), 3337-3350.
•
Kalem, G., Vayvay, O., Sennaroglu, B., & Tozan, H. (2020). Technology Forecasting in the Mobile Telecommunication Industry: A
Case Study Towards the 5G Era. Engineering Management Journal, 1-15.
•
IBISWorld. https://my-ibisworld-com.ezproxy.snhu.edu/
•
Abolhassani, A., Harner, E. J., & Jaridi, M. (2019). Empirical analysis of productivity enhancement strategies in the North American
automotive industry. International Journal of Production Economics, 208, 140-159.

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Knight Capital Americas

Description

I have an assignment which is below:

I’m responsible for one question.

It took 19 years to build Knight Capital Americas LLC into the largest market maker on the New York Stock Exchange, but on August 1, 2012, it took only 45 minutes for the firm to be wiped out by an information technology (IT) problem: a change in the company’s software caused it to lose more than $450 million dollars in less than an hour. Although it was ultimately saved from bankruptcy when it was acquired two days later, the terms of acquisition were very unfavourable to the company’s shareholders.

The above case study is available with your Harvard coursepack (In attachment)

Each team will read the above, discuss, and address the following questions based on which they will make a 15-minute presentation.

Questions:

1- What happened at Knight Capital on August 1, 2012 at 9.30am? What went wrong?

2- If we take a step back from the specifics, what would you say are the deeper causes of these events? How did this happen?

3- Could it have been prevented by better management? What different procedures for change control, event response etc. should have been in place that were not?

4- How culpable is CEO Joyce in all this? How about the board of directors? How can boards anticipate risks like this and forestall them? Or can they?

5- What lessons does this story hold for how firms should be managed and governed? And what does it say about our ability to manage risk in large modern corporations operating in increasingly fast-moving and complex global markets?

I’m responsible for one question which question number 4- How culpable is CEO Joyce in all this? How about the board of directors? How can boards anticipate risks like this and forestall them? Or can they?

Unformatted Attachment Preview

For the exclusive use of D. Seci, 2018.

:
.1,*+7&$3,7$/$0(5,&$6//&
Professors Robert D. Austin and Darren Meister wrote this case solely to provide material for class discussion. The authors do
not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain
names and other identifying information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without
the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction
rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business
School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com.
Copyright © 2015, Richard Ivey School of Business Foundation
Version: 2016-03-07
We’re pleased to report that total revenues rose 22.2 per cent and pre-tax earnings rose 24.8
per cent compared to 2010 . . . In 2011, we again led all securities firms in shares traded of
NYSE- and Nasdaq-listed stocks, ETFs [exchange traded funds], and OTC [over-the-counter]
Bulletin Board and OTC Market Securities. In recognition of our exceptional technology,
Knight was ranked 1st in the banking and financial services category of the InformationWeek
500, and 14th overall . . .
— Thomas M. Joyce, Knight’s chairman and chief executive officer (CEO) 2
On Wednesday, August 1, 2012, at 8:01 a.m., the computer systems of Knight Capital Americas LLC
(Knight) started to send emails to employees referencing “SMARS,” the company’s automated system
that sent equity orders to the market for execution. The would-be recipients were being notified about a
“Power Peg disabled error.” Over the next hour and a half, 97 emails were sent, but most went unread.
None prompted significant action. 3
A little before 9:30 a.m., Knight systems began processing 212 orders from broker-dealers who had
been pre-qualified to participate in a New York Stock Exchange (NYSE) program scheduled to start on
that day, the “Retail Liquidity Program” (RLP). Knight’s information technology (IT) staff had
deployed new software in the previous four days to prepare for the RLP launch. As stock markets
opened, the new software began to operate. 4
But there was something wrong. One of eight servers that ran SMARS software was somehow
different from the rest. This “rogue server” began sending trade orders to the market without keeping
track of whether previous orders had been filled. 5 In large volume and at a dizzying speed, buy and sell
orders streamed from Knight Capital into the markets.
These orders produced noticeable effects. The prices of 150 stocks of companies large and small began
to swing wildly, some rising, some falling, many by more than 10 per cent in mere minutes. 6 A trading
frenzy commenced as others joined in. Wells Fargo (WFC), for example, traded 22.6 million shares,
more than it had traded in the previous two days, in just a few minutes. 7
Knight continued this trading for 45 minutes. Realizing that something was wrong, the company then
notified clients “to route listed orders away” and shut down trading. The frenzy that Knight had started
continued, however, and at 11 a.m., the NYSE halted trading in six stocks, as so-called “circuit
breakers” triggered; later that afternoon, the NYSE would cancel trades in a handful of stocks that had
traded during the morning frenzy at 30 per cent or more higher or lower than their opening prices.
This document is authorized for use only by Daniela Seci in Strategic Information Systems Spring 18 taught by Rashmi Jain, Montclair State University from January 2018 to July 2018.
For the exclusive use of D. Seci, 2018.
3DJH
%(
Market observers concluded that Knight had likely been the cause of the market disruptions, and the
company’s stock began to trend downward. By the end of the day, Knight’s stock price would drop 33
per cent. 8
Less than an hour after the markets’ opening and struggling to understand what had happened,
managers at Knight were stunned to discover that the company had, in a mere 45 minutes, sent millions
of orders, resulting in four million trade executions in 154 stocks for more than 397 million shares.
Knight had assumed an approximately $3.5 billion net long position in 80 stocks and an approximately
$3.15 billion net short position in 74 stocks. 9
Later in the day, Knight announced that “a technology issue” had resulted in trading losses of
approximately $440 million, an amount comparable to its total market capitalization at market close on
Wednesday, that is, $681 million. 10 As one writer put it, the company had shown the world “how to
lose $172,222 per second for 45 minutes.” 11
CEO Joyce had been out of the office on Tuesday for knee surgery. On Wednesday morning, he
limped back into a company deep in crisis. The stock fell 63 per cent on Thursday, as the company
sought an investor or a buyer. Worth more than $1 billion at the beginning of the day on Tuesday,
Knight had shrunk to $250 million by Thursday night. Large customers, such as the Vanguard Group
and TD Ameritrade, announced that they had stopped doing business with Knight. Analysts suggested
that without rescue by an external party within two or three days, the company would not survive. 12
On Friday morning, Knight announced that it had secured a line of credit from a group of investors that
included TD Ameritrade and Blackstone in an arrangement that involved selling the new backers $400
million in convertible shares. The deal was painful for shareholders because it heavily diluted their
shares, but it was better than a Knight bankruptcy, the only apparent alternative. TD Ameritrade and
other firms promptly resumed business with Knight, and the stock began to recover. By the time
markets closed for the weekend, the stock was up 57 per cent from its low point.13 The company had
survived a near-death experience — but not without incurring serious damage to its reputation and
owners.
In September, Knight hired IBM to conduct a review of its internal systems development process. 14 In
October, the company announced its quarterly results — a net loss of $389.9 million on negative
revenues of $189.8 million — and disclosed that losses from the August 1 event had increased to $461
million. It also announced the creation of a board-level risk committee. 15
In December, Getco, a high speed trading firm that had been part of the investor group, agreed to
acquire Knight in a $1.4 billion deal. Upon completion of the deal in July 2013, Joyce announced his
resignation. 16

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Founded in 1995, Knight was “built on the idea that the self-directed retail investor would desire a
better, faster and more reliable way to access the market.” The company was a market maker, a brokerdealer that handled and submitted proposed trades on behalf of others (e.g., retail investors); it was the
largest in the United States in terms of volume on major stock markets (NYSE, NASDAQ). Knight
clients included more than 5,000 of the world’s largest institutions and financial services firms to
whom it provided ”superior trade executions in a cost effective way for a wide spectrum of clients in
multiple asset classes, including: equities (domestic and foreign securities), fixed income securities,
derivatives, and currencies.”
This document is authorized for use only by Daniela Seci in Strategic Information Systems Spring 18 taught by Rashmi Jain, Montclair State University from January 2018 to July 2018.
For the exclusive use of D. Seci, 2018.
3DJH
%(
By 2012, on active days Knight executed more than 10 million trades, with volume exceeding 20
billion shares. The company maintained offices in the United States, Europe and Asia and employed
more than 1,500 people. In 2011, Knight:
x
x
x
x
x
Made markets in or traded approximately 19,000 securities.
Executed trades of more than one trillion shares (approximately 4 billion per day) in U.S. equities.
Executed more than 900 million equity trades (approximately 4 million per day).
Traded more than $6.4 trillion in notional value (over $24 billion per day). ?
Accounted for approximately 10 per cent of all trades in listed U.S. equity securities.
The majority of trades executed by Knight originated with retail investors and came to Knight via retail
brokers. But institutional clients also provided orders to Knight on behalf of mutual funds and pension
plans. ?
Knight enjoyed particular renown for its use of technology. The company worked actively to promote
its reputation as a leader in the use of trading technology. In June 2012, five weeks before the problem
on August 1, Joyce gave testimony to the U.S. Congress, advising it on how to promote the efficiency
of stock markets. In the process, he advertised the unique merits of Knight’s IT capabilities:
Our data centers are some of the largest and most reliable in the industry. We spend tens of
millions of dollars every year making our technology platform better, faster and more reliable.
Today, we have the capacity to process 20 million trades per day. We have connectivity to
nearly every source of liquidity in the equities market, and our trade response times are
measured in milliseconds. Our years of research and development, technology platform
enhancements, and connectivity to liquidity wherever it resides is all brought to bear in our
endeavour to secure best execution on behalf of our customers . . . As a result, we believe that
Knight is uniquely qualified to comment on the market structure issues which are the focus of
this hearing.
In 2011, Knight’s revenues reached a record $1.36 billion, while earnings increased to $115.6 million.
At the end of 2011, Knight had $7.2 billion in assets, $4.4 billion of which primarily consisted of cash
or assets readily convertible to cash. During the time Joyce had been CEO, revenues had multiplied
nine times, and share price had climbed 85 per cent. 18
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MGT302 Organization and Teamwork Modules 1-4 Case Assignments

Description

MGT302 Organization and Teamwork Modules 1-4 Case Assignments. I got behind in this class due to helping out with recovery efforts in Puerto Rico, I really need help completing these assignments. thanks for you help in advance.

Unformatted Attachment Preview

Module 1 – Case
Individual Differences in the Workplace
Assignment Overview
Managers often notice the relationship between attitudes and job performance. Have you ever
heard someone say, “With that go-get ’em attitude, she will set new sales records!” or “His
attitude is so poor, he never produces quality work.” However, managers seldom realize that they
can affect an employee’s work attitudes (such as job satisfaction and commitment), which in turn
can affect job outcomes such as turnover, absenteeism, and productivity.
In this first Case Assignment, you will be viewing two clips from the movie “Office Space.”
These videos demonstrate work attitudes, factors that can shape those attitudes, and the end
effect on work behavior. As you watch the clips, make some notes about examples you see that
give you some clues about the different characters and:
o
o
o
o
o
Job satisfaction
Attitudes toward management
Attitudes toward co-workers
Organizational Commitment
Work environment and conditions (such as physical surroundings)
View the following two movie clips from the movie Office Space:
Case Assignment
Read the following article from the Trident University Library:
Riordan, C. (2013) The power of “thank you”: 3 steps to a culture of gratitude. HR Specialist,
11(17),7.
Hint: Just copy and paste the title of the article into the Library Access search box on the Trident
University Portal page. Do not include the author’s name or publication; the article title is all
you need.
After reading the above article, background material, and reviewing your notes on the videos,
consider the following questions:
•
•
•
How would you characterize the general work environment at Initech?
What are Peter’s attitudes about working at Initech? What are the likely causes of those
attitudes?
How does he feel about his supervisors?
•
•
Do his co-workers show similar attitudes?
What do you predict would be the effect of these attitudes on job commitment,
absenteeism, and turnover? Why?
Now, write a 3- to 4-page paper discussing the film clips and the above questions. A good way to
organize your paper would be to divide it into the following sections:
1.
2.
3.
4.
5.
Introduction that briefly describes the situation at Initech. (one paragraph)
The Environment at Initech (including supervision style and physical environment)
The observed job attitudes of Peter and his co-workers
The likely outcomes of those attitudes
Conclusion that makes one recommendation for a change that Lumbergh could make that
would improve job satisfaction among employees at Initech.
Be sure to support your arguments with references to the background readings and use specific
examples from the clips to illustrate your main points.
Upload your assignment to the Case 1 Dropbox. Be sure to review your TurnItIn Originality
report. If the score is over 20%, you may be copying too much material from the internet or other
sources and you will need to contact your professor and arrange to revise and resubmit the paper.
Assignment Expectations
The Case papers in this course will be evaluated using the criteria as stated in the Case rubric.
The following is a review of the rubric criteria:
•
•
•
•
•
Assignment-Driven: Does the paper fully address all aspects of the assignment? Is the
assignment addressed accurately and precisely using sound logic? Does the paper meet
minimum length requirements?
Critical Thinking: Does the paper demonstrate graduate-level analysis, in which
information derived from multiple sources, expert opinions, and assumptions has been
critically evaluated and synthesized in the formulation of a logical set of conclusions?
Does the paper address the topic with sufficient depth of discussion and analysis?
Business Writing: Is the essay logical, well organized and well written? Are the
grammar, spelling, and vocabulary appropriate for graduate-level work? Are section
headings included? Are paraphrasing and synthesis of concepts the primary means of
responding, or is justification/support instead conveyed through excessive use of direct
quotations?
Effective Use of Information: Does the submission demonstrate that the student has
read, understood, and can apply the background materials for the module? If required, has
the student demonstrated effective research, as evidenced by student’s use of relevant and
quality sources? Do additional sources used provide strong support for conclusions
drawn, and do they help in shaping the overall paper?
Citing Sources: Does the student demonstrate understanding of APA Style of
referencing, by inclusion of proper citations (for paraphrased text and direct quotations)
as appropriate? Have all sources (e.g., references used from the Background page, the
•
assignment readings, and outside research) been included, and are these properly cited?
Have all sources cited in the paper been included on the References page?
Timeliness: Has the assignment been submitted to TLC (Trident’s learning management
system) on or before the module’s due date?
Privacy Policy | Contact
Module 2 – Case
Workplace Motivation
Assignment Overview
As in some of the assignments in this course, you will draw upon your personal experience for
this Module 2 Case assignment. For the assignment, you will consider the topic of
telecommuting and motivation. You will prepare a blog entry that discusses your own experience
and applies the background material to the prospect of becoming a telecommuter.
For an overview of some important current issues in telecommuting and working remotely please
read:
Peck, E. (2015, March 18) Proof that working from Home is Here to Stay: Even Yahoo Still
Does It. Retrieved from http://www.huffingtonpost.com/2015/03/18/the-future-is-happeningnow-ok_n_6887998.html
Case Assignment
In the background materials, you read about some very traditional theories of motivation such as
Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory. There is sometimes a
challenge in applying these theories.
Begin with some personal reflection. Consider a time at work when you felt highly motivated.
Apply Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory to your situation. Think
about what motivates you personally. Can you apply Maslow’s and Herzberg’s theories to
yourself? For this assignment, you will discuss these ideas in a hypothetical situation in which
you are offered the opportunity to work remotely, that is, telecommute to your job.
For this Module 2 Case Assignment, you will prepare a blog entry with the title:
My company has offered me a chance to work remotely. Should I telecommute? How
can I stay motivated working from home? If I decide to work from home, what can my
company do to help me stay highly motivated?
Your blog entry should discuss the following:
•
•
•
•
What motivates you?
How do Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory explain your
own and other employees’ motivation?
How can employees remain highly motivated when telecommuting? What can they do to
motivate themselves? What can the company do to motivate telecommuting employees?
Will you become a telecommuter? Why or why not?
Your blog entry should be the equivalent of a four- to five-page paper. Also, be sure to use intext citations and a reference list. For administrative purposes, please add a title page so that your
assignment can be readily identified.
Assignment Expectations
•
•
•
•
Be sure to address the questions presented directly.
Stay focused on the precise assignment questions; do not go off on tangents or devote a
lot of space to summarizing general background materials
Use reliable and credible sources as your references. If you find articles on the internet,
make sure they are from a credible source.
Reference your sources of information with both a bibliography and in-text citations. See
the Student Guide to Writing a High-Quality Academic Paper, including pages 13-14 on
in-text citations. Another resource is the “Writing Style Guide,” which is found under
“My Resources” in the TLC portal.
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Module 3 – Case
Groups and Teams at Work
Assignment Overview
This Module 3 Case Assignment has two functions. First, it helps you develop and demonstrate
your understanding of the topics in Module 3. Second, it will help to assess the development of
your written communications skills. This Case will be graded using a special Written
Communications Rubric, which you should review before you begin writing the assignment.
Case Assignment
For this assignment, you will engage in a roleplay, placing yourself in the role of Management
Consultant. Your deliverable will be a PowerPoint Presentation. You will draw on the
background material and your analysis of a scenario presented in a memo to prepare your
presentation.
Background: You work for a management consulting firm, Capital Consultants (CC). Your firm
has been hired to advise Leading Edge Fashions, a small high-end house with a celebrity
clientele. You have received the following memo from the head of CC.
To:
From: Vivian von der Bach, President and Senior Consultant
I am assigning you to our newest client, Leading Edge Fashions. As you may know, this wellknown fashion house has experienced problems since the death of its chief designer, Sir Francis
Green.
In the two years since Sir Francis’s death, the CEO of Leading Edge, M. Etienne Roget, has
delegated artistic control to a committee of experienced designers chosen from within the
company. The results have been far from what was hoped. In the first year, the committee could
not decide on a theme for Spring. As a result, that season’s collection was a confused mess that
one critic referred to as “the remnants of a Hollywood garage sale.” In the second year, the
committee tried to avoid making the same mistake and settled on a theme after meeting for only
one hour. The “Game of Thrones” collection was another disaster, with such inappropriate items
as a bronze helmet and a bearskin cape.
M. Roget has been searching the world for a chief designer to fill the void created with Sir
Francis’s death. He has been unsuccessful to date. Further, he fears that disbanding the
committee would be seen by its members as a vote of no confidence and would lead to mass
resignations.
Your job is to join the committee as a co-chair and advise it on organizational matters, especially
as relates to the team’s development. Obviously, you should not try to advise the committee on
fashion—CC has no expertise in that area. Your task will be to guide the committee in its
deliberations and to help a small group of experienced, opinionated designers achieve good
results on Leading Edge Fashion’s Winter collection for next year.
Before you join the committee, M. Roget would like to have some idea of what you will be
looking for and what you may be able to accomplish. To that end, you should prepare a
PowerPoint presentation in which you present what may have happened to the committee,
namely what may have “gone wrong” in the past two years and what you could do to keep it
from happening again.
Your PowerPoint presentation should be professional with a recommended length of 8 to 12
slides. Please use the notes section of the slides to explain your slide content in detail. Be sure to
include citations in the body of the presentation as well as a “references” slide.
Congratulations on being selected for this important project. I am looking forward to reviewing
your presentation.
Assignment Expectations
1. Be sure to include a Title Slide and References Slide in your PowerPoint presentation of
8 to 12 slides. Be sure to use the notes sections to explain your slides.
2. Study the Written Communications Rubric. Review it before, during, and after preparing
your presentation.
3. Demonstrate your knowledge and understanding of the materials cited on the Background
page. Supplement these with at least two relevant sources you locate from the Trident
Online Library or from the Web.
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Module 4 – Case
Organizational Culture and Diversity
Assignment Overview
Southwest Airlines and Koch Industries are both known for their distinctive organizational
cultures, and both have been highly successful and profitable companies. Southwest Airlines is
known as a “fun” place to work, where socialization and humor in the workplace are strongly
encouraged. Koch Industries, on the other hand, has a culture defined by the principles of
“market-based management,” where performance and revenue growth is emphasized.
Do some background reading on the cultures behind Southwest Airlines and Koch
Industries. Here are some articles and video to get you started on your research that will give you
some background about the cultures at these two organizations:
Klein, D. (2011). Creating cultures that lead to success: Lincoln Electric, Southwest Airlines, and
SAS Institute. Organizational Dynamics 41(1), 35-39 [Available in Science Direct. Note: you
only have to read the middle portion of the article concerning Southwest Airlines and not the
whole article]
Bird, A. (Mar. 13, 2011). Southwest: Corporate culture combines work, play. The Post and
Courier. [ProQuest]
Whatley, H. (2013). Principles and dimensions of market-based management. Independent
Journal of Management & Production, 4(1), 126-135. [ProQuest]
Dissecting the Kochtopus. (Jun. 7, 2014). The Economist, 411, 76. [ProQuest]
WorkatWorkTV. (2010) Successful Organizational Cultures. Retrieved at

Case Assignment
Prepare a 4- to 5-page (not including title page and references) critique per the following
format:
Title Page. Be sure to include the relevant information (e.g., Name, Class, Professor,
Assignment, Date) on this title page.
Introduction. Discuss the topic of the paper and how you will approach it. It is best to write this
section after you have written the rest of the paper.
The Culture of Southwest Airlines. Describe the key elements of the culture of Southwest
Airlines and explain why these cultural elements are essential to Southwest Airlines’ success. Be
sure to apply the background material.
The Culture of Koch Industries. Describe the key elements of the culture of Koch Industries
and explain why these cultural elements are essential to Koch Industries’ success. Be sure to
apply the background material.
Koch Industries Should Not Purchase Southwest Airlines. Make an argument that Koch
Industries should not purchase Southwest Airlines. Discuss the specific differences between the
cultures of Southwest Airlines and Koch Industries in support of this position. Be sure to use the
background material to support your argument.
Conclusion. Discuss the key points in your analysis that demonstrate the importance of
understanding that organizational cultures are not easily changed and why culture should be a
primary consideration when organizations contemplate merger.
Reference List: List all references that you have cited in the paper using APA or other standard
formatting. References include materials from the required background readings as well as any
outside Internet or library sources you used in researching and writing your paper.
Assignment Expectations
•
•
•
•
Answer the assignment questions directly.
Stay focused on the precise assignment question and the assertions to critique; do not go
off on tangents or devote a lot of space to summarizing general background materials.
Use reliable and credible sources as your references. Articles published in established
newspapers or business journals/magazines are preferred. If you find articles on the
internet, make sure they are from a credible source.
Reference your sources of information with both a bibliography and in-text citations. See
the Student Guide to Writing a High-Quality Academic Paper, including pages 13-14 on
in-text citations. Another resource is the “Writing Style Guide, which is found under “My
Resources” in the TLC portal.
Privacy Policy | Contact

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Campbellsville AnyLogistix GFA Polarbear GBI Questions Discussion

Description

Download attached documents for additional instructions.

Start with the Polarbear-GBI consolidation exercise and read through this first.

Use the Polarbear-GBI Answer sheet to submit your answers.

The two Excel file provide are called for as you go through the exercise.

Note: This product only works on PC, no MAC. If you have a MAC, find a friend with a PC that you can borrow.

Unformatted Attachment Preview

Polarbear-GBI answer sheet: Please put your answers in red
a. Place a screen shot of you GFA clearly showing the name of your scenario (must have
your name or initials in it, and the map of Germany here. No screen shot-No credit for
any of the following!
1. What are the optimal coordinates of the DC?
2. What is the maximum distance from the optimal DC location to a customer?
3. What is the minimum distance from the optimal DC location to a customer?
4. What are the total costs of the SC?
(Note: to compute the sum of costs or flows in GFA Results, just slightly drag the heading of
the column “Period” in table “Product flows” in the space over the table)
5. Compare the data in statistics “Flows”and Table“Demand”. Do we satisfy all customer
demands from the optimal DC location? If Yes, why? If no, why?
6. What are the total costs of the SC?
7. Compare the results with one and two DCs in terms of costs and responsiveness.
8. What other costs were not considered in selecting the optimal facility location in the GFA?
b. place a screen shot here clearly showing your new NO results with your name or initials in the
name of the scenario. No screen shot-No credit for any of the following!
9. What is the most profitable SC design?
10. Is demand for all customers satisfied? Why or Why not?
11. What is the total revenue of the most profitable SC?
12. What is total profit of the most profitable SC?
13. Compare the data in statistics “Production Flows” and Table “Demand”. Does the
production quantity correspond to the total demand? Explain.
14. Compare the optimal SC design as computed in the NO and the initial SC design (factory and
DC in Germany) in terms of profit.
15. What other costs should be considered when redesigning the SC according to NO results?
16. What other factors, apart from costs, should be considered when re-designing the SC
according to the results of the NO?
Exercises in Supply Chain Optimization
and Simulation using anyLogistix
Prof. Dr. Dmitry Ivanov
Berlin School of Economics and Law
Professor of Supply Chain and Operations Management
Modified by Dr. Ed Lindoo, Campbellsville University, 2020.
To be cited as: Ivanov D. (2019). Exercises in Supply Chain Optimization and Simulation using anyLogistix,
nd
Berlin School of Economics and Law, 2 , updated edition
© Prof. Dr. Dmitry Ivanov, 2019. All rights reserved.
1. Introduction
Supply chain network design and operational planning decisions can have a drastic impact on the
profitability and success of a company. Whether to have one warehouse or two, close a factory or rent a
new one, or to choose one network path over another are all consequential decisions a supply chain (SC)
manager must make. However, these decisions must be the result of more than experience or intuition, and,
as a result, research in SC management (SCM) is geared towards providing the data, tools, and models
necessary for supporting SC managers’ analytical decisions. One of these decision-supporting tools is
anyLogistix, a software which facilitates Greenfield Analysis, Network Optimization, and Simulation.
anyLogistix has become more and more popular with the provision of the free PLE version, and because it is
an easy-to-use software, includes simulation and optimization, and covers all standard teaching topics
(center-of-gravity, efficient vs responsive SC design, SC design through network optimization, inventory
control simulation with safety stock computations, sourcing (single vs. multiple) and shipment (LTL vs FTL)
policy simulation, and milk-run optimization).
The ALX exercise book addresses the application of quantitative analysis methods and software to decisionmaking in global supply chains and operations. Understanding of optimization and simulation methods in
SCM is the core of the course. Technical skills for using simulation and optimization software in praxis can
be acquired with the help of anyLogistix software. This case study is designed to stimulate and enhance
conceptual and analytical decision-making skills in actual operating situations. The case method requires
you to prepare a decision based on careful evaluation of case facts and numbers to the extent possible. As
with all business situations, there may be insufficient facts, ambiguous goals, and dynamic environments.
This case seeks to convey the following skills:
Analytical Skills: Students will possess the analytical and critical thinking skills to evaluate issues faced in
business and professional careers.
Technical Skills: Students will possess the necessary technological skills to analyze problems, develop
solutions, and convey information using optimization and simulation software.
Along these lines, throughout the course we will examine two scenarios:
Building a new SC from scratch -a case study of the Polarbear Bicycle company, which
must create and optimize its SC in order to maintain profitability and keep its competitive
edge in an increasingly global market where sales prices are driven down while costs re
main stable and seeks to analyze the performance of their existing SC and optimize its distribution
network, while considering the risks and ripple effect.
Using the models available in anyLogistix, we will conduct analyses to (1) determine an optimal location
using Greenfield Analysis (GFA) for a new warehouse, given the location of their current customers and those
customers relative demands, (2) compare alternative network designs using Network Optimization (NO).
2. Case study
2.1 Description of Case Study
We consider a company called Polarbear Bicycle. Polarbear Bicycle was founded as an e-commerce start-up
selling bicycles, however they were just purchased by the company you work for as an analyst……Global
Bikes (GBI). With this new purchase, the board of directors of GBI is asking a number of questions that you
as an analyst for GBI need to answer. Polarbear’s portfolio includes four different types of bicycles: x-cross,
urban, all terrain, and tour bicycles. You have been assigned the task to find the best location for one or two
Customer
Cologne
Cologne
Cologne
Cologne
Bremen
Bremen
Bremen
Bremen
Frankfurt am Main
Frankfurt am Main
Frankfurt am Main
Frankfurt am Main
Stuttgart
Stuttgart
Stuttgart
Stuttgart
Bicycle Type
x-cross
urban
all terrain
tour
x-cross
urban
all terrain
tour
x-cross
urban
all terrain
tour
x-cross
urban
all terrain
tour
Costs
Factory Nuremberg: fixed (other) costs, per day
Factory Poland: fixed (other) costs, per day
DC Germany: fixed (other) costs, per day
DC Germany: carrying costs (per bicycle)
DC Czech Republic: fixed (other) costs, per day
DC Czech Republic: carrying costs
DC Germany: processing costs (inbound and outbound shipping
per pcs)
DC Czech Republic: processing costs (inbound and outbound
shipping per pcs)
Factory Nuremberg: production costs (per bicycle)
Factory Poland: production (per bicycle)
All bicycles: product purchasing costs
Transportation costs; Paths: from factory -to DCs
Transportation costs; Paths: from DCs -to customers
Unit revenue
Table 1
Demand per day
2
50
15
10
7
30
20
20
6
5
4
5
15
15
1
40
Value in USD
15,000
5,000
15,000
3.00
5,000
2.00
2.00
1.00
250
150
30
0.01 * product(pcs) * distance
0.01 * product(pcs) * distance
499
new distribution centers (DC). First, you estimate customer demand based on Table 1 above. Polarbear
distributes their bicycles to four locations throughout Germany: Cologne, Bremen, Frankfurt am Main, and
Stuttgart. Table 1 shows customer demand, which is equal to 245 bicycles per day.
GBI now needs you to analyze supply and distribution network alternatives and to develop a best-case
scenario for Polarbear-GBI Bicycle. You are charged with conducting a GFA to determine the possible
location of a new DC or DC’s in Germany, as well as a network optimization to compare several options for
network paths.
2.2 Greenfield Analysis (GFA) for Facility Location Planning: Selecting the Best
Warehouse Location for Polarbear-GBI Bicycle
Now we conduct a GFA for the outbound network of Polarbear-GBI Bicycle considering the four customers
located in Cologne, Bremen, Frankfurt am Main, and Stuttgart. The aim of this GFA is to determine the
optimal location of one (or two) new DC’s in Germany subject to total minimum transportation costs. Note:
for the purposes of this analysis we are not considering current GBI customers or DC’s within Europe.
Polarbear-GBI makes and sells very unique bicycles that currently are not a good fit within the GBI
network, therefore we consider a completely separate distribution network.
Creating an ALX model.
Step 1. Open Anylogistix. Click on New Scenario, click OK. Next click on import scenario then select the
file you downloaded, PB GFA Level 2 with Solutions.xlsx. Change the scenario name to your name
Note: You may receive a warning about old data file. You should be able to say OK and just ignore it.
Performing experiments. Data from Table 1 has already been entered for Customers, Demand, and
Products.
Step 2. Go to GFA Experiment and run it for “Number of sites = 1” and the period of two months.
Select custom periods and make sure the default dates 11/1/17 – 12/31/17 are set.
Step 3. Analyze the results using statistics “Flows” and “New Sites”:
Note: Use the Polarbear-GBI case study answer sheet to submit ALL of your answers.
1. What are the optimal coordinates of the DC?
2. What is the maximum distance from the optimal DC location to a customer?
3. What is the minimum distance from the optimal DC location to a customer?
4. What are the total costs of the SC? (Note: to compute the sum of costs or flows in GFA Results, just
slightly drag the heading of the column “Period” in table “Product flows” in the space over the
table.
5. Compare the data in statistics “Flows”and Table“Demand”. Do we satisfy all customer demands
from the optimal DC location? If Yes, why? If no, why?
Step 4. Go to GFA Experiment and run it for “Number of sites = 2”.
Step 5. Analyze the results using statistics “Flows” and “New Sites”:
6. What are the total costs of the SC?
7. Compare the results with one and two DCs in terms of costs and responsiveness.
8. What other costs were not considered in selecting the optimal facility location in the GFA?
2.3 Network Optimization (NO) for Facility Location Planning: Comparing Po
larbear’s Supply Chain Design Alternatives
After selling the bicycles from the newly established DC(s) according to the GFA results, Polarbear-GBI
decided to produce their own bicycles. Their production facility has now been established in Nuremberg and
250 bikes are produced each day. Recently, they have received an offer from a Polish production factory to
rent a DC in the Czech Republic at a reasonable price. The same company also wants to offer them rental of
a factory in Warsaw, Poland, even though they already have one factory in Germany. Polarbear-GBI must
now decide which SC design is more profitable:
Option 1: DC in Germany and Factory in Germany
Option 2: DC in Germany and Factory in Poland
Option 3: DC in Czech Republic and Factory in Poland
Option 4: DC in Czech Republic and Factory in Germany
In Fig. 1, the different possibilities for the path networks are shown. The dotted lines show possible
alternatives and the solid lines the existing structure of Polarbear’s SC.
Figure
1.
Network
optimization
alternatives
The aim of the
NO
is
to
determine which network design is optimal based on Polarbear’s selected KPIs, e.g., profit.
Therefore, the factory in Warsaw, Poland, the DC in the Czech Republic, and the DC in Steimelhagen were
added as inputs to the model along with the Nuremburg factory. To enable the model’s calculation, the
reality of the case must be simplified: all demand is assumed to be deterministic without any uncertain
fluctuations. To define the two-stage NO problem (transport between factories and DCs and between DCs
and customers) from a mathematical perspective, several parameters must be input as data. These are
shown in Table 2.
The costs of the rent for the factory in Poland and the DC in Czech Republic are included in “othercosts”.
For transport, it is always assumed that each truckload fits 80 bicycles, and trucks travel at a speed of 80
km/h.
Creating an ALX model
Step 0. Probably best to close and re-open ALX at this point. Now create an new scenario as you did in
Step 1 above and import the file PB NO Level 2 Solution.xlsx. Rename it so that it has your name or
initials as the scenario name: Note: Data from Table 2 has been entered for you.
Note: You may receive a warning about old data file. You should be able to say OK and just ignore it.
Performing experiments Step 1. Go to NO Experiment and run it with the Demand variation type “95100%”.
3
NOTE! In order to run the NO experiment, make sure the units in experiment settings is set from m to
pcs to align it with product data.
Step 2. Analyze the results using statistics “Optimization Results”, “Flow Details”, “Production Flows”,
“Demand”, and “Overall Stats”:
b. place a screen shot here clearly showing your new NO results with your name or initials in the
scenario name.
9. What is the most profitable SC design?
10. Is demand for all customers satisfied? Why or Why not?
11. What is the total revenue of the most profitable SC?
12. What is total profit of the most profitable SC?
13. Compare the data in statistics “Production Flows” and Table “Demand”. Does the production
quantity correspond to the total demand? Explain.
14. Compare the optimal SC design as computed in the NO and the initial SC design (factory and DC in
Germany) in terms of profit.
15. What other costs should be considered when redesigning the SC according to NO results?
16. What other factors, apart from costs, should be considered when re-designing the SC according to
the results of the NO?
description Copy of scenario PB GFA Level 1.Description of the original scenario:
type
GFA
name
PB GFA Level 2 with Solutions
creationDate
2018-06-19
Name
Type
Cologne Customer
Bremen Customer
Stuttgart Customer
Frankfurt am
Customer
Main
Location Inclusion Type
Icon
Cologne location
Include
Bremen location
Include
Stuttgart location
Include
Frankfurt am
Include
Main location
4
4
4
4
Name
Type
Location
Inclusion Type
Icon
Customer Product Demand Type
Time Period
Cologne bicycle “all terrain”
PeriodicDemand[period::1.0;quantity::15.0]
(All periods)
Cologne bicycle “tour”
PeriodicDemand[period::1.0;quantity::10.0]
(All periods)
Cologne bicycle “urban”
PeriodicDemand[period::1.0;quantity::50.0]
(All periods)
Cologne bicycle “x-cross”
PeriodicDemand[period::1.0;quantity::2.0]
(All periods)
Bremen bicycle “all terrain”
PeriodicDemand[period::1.0;quantity::20.0]
(All periods)
Bremen bicycle “tour”
PeriodicDemand[period::1.0;quantity::20.0]
(All periods)
Bremen bicycle “urban”
PeriodicDemand[period::1.0;quantity::30.0]
(All periods)
Bremen bicycle “x-cross”
PeriodicDemand[period::1.0;quantity::7.0]
(All periods)
Frankfurt am
bicycle
Main “all terrain”
PeriodicDemand[period::1.0;quantity::4.0]
(All periods)
Frankfurt am
bicycle
Main “tour”
PeriodicDemand[period::1.0;quantity::5.0]
(All periods)
Frankfurt am
bicycle
Main “urban”
PeriodicDemand[period::1.0;quantity::5.0]
(All periods)
Frankfurt am
bicycle
Main “x-cross”
PeriodicDemand[period::1.0;quantity::6.0]
(All periods)
Stuttgart bicycle “all terrain”
PeriodicDemand[period::1.0;quantity::1.0]
(All periods)
Stuttgart bicycle “tour”
PeriodicDemand[period::1.0;quantity::40.0]
(All periods)
Stuttgart bicycle “urban”
PeriodicDemand[period::1.0;quantity::15.0]
(All periods)
Stuttgart bicycle “x-cross”
PeriodicDemand[period::1.0;quantity::15.0]
(All periods)
id
date
quantity
Name
DescriptionCustomers Sites
Suppliers Groups
Name
Locations
Code
Name
City
Region
Cologne location
Bremen location
Stuttgart location
Frankfurt am Main location
Country
Address
Latitude
50,8337
53,05442
48,77791
50,07829
Longitude Autofill Coordinates
6,855469 FALSE
8,85498 FALSE
9,294434 FALSE
8,635254 FALSE
Autofill Coordinates
Name
Product
Amount from
Amount to Unit to
Name
Periods
Name
Start
End
Demand Coefficient
Basic period2017-01-012017-12-31
1
Name
Products
Name
Unit
bicycle “all terrain”
pcs
bicycle “tour”
pcs
bicycle “urban”
pcs
bicycle “x-cross”
pcs
Delivery Destination
Product
Source
Time PeriodInclusion Type
Name
Type
Location
Products
Inclusion Type
Icon
Currency
Volume
Distance
Time
USD

km
day
maxDist
20
minimizeSitesNumber
FALSE
destinations(All customers)
nSitesConstr
2
distanceUnitkm
productUnitpcs
sourcingPriority
FALSE
toSiteTranspCoeff 0,9
statsDistanceStep 100
latLonOffset
1
newSiteIcon
2
name
type
GFA
scenario PB GFA Level 2 with Solutions
statisticsSettings
GFA_FLOWS::true;d;f
GFA_NEW_SITES::true;d;f
GFA_DISTANCE_BY_DEMAND::true;d;f
GFA_DEMAND_BY_DISTANCE::true;d;f
GFA_TOTAL_DEMAND_BY_DISTANCE::true;d;f
Units settings
Currency::USD
Volume::m³Time::day Distance::km
timeType Custom period
startPeriod
endPeriod
startDate 2017-11-01T00:00
stopDate 2017-12-31T00:00
dashboardData
Page name Chart type Accumulative
Stats namesLayout dataDetalizationFilters
Chart name
dashboardData
Flows
CUSTOM_TABLE
TRUE GFA_FLOWS0,0,36,8
Flows
dashboardData
New sites CUSTOM_TABLE
TRUE GFA_NEW_SITES
0,0,36,8
New sites
dashboardData
Distance byCUSTOM_TABLE
demand
TRUE GFA_DISTANCE_BY_DEMAND
0,0,36,8
Distance by demand
dashboardData
Demand byCUSTOM_TABLE
distance
TRUE GFA_DEMAND_BY_DISTANCE
0,0,18,8
Demand by distance
dashboardData
Demand byCUSTOM_TABLE
distance
TRUE GFA_TOTAL_DEMAND_BY_DISTANCE
0,0,18,8
Total demand by distance
preProcessor
postProcessor
Total demand by distance
minPopulation 50000
destinations(All customers)
ignoreNotRealRoutes
FALSE
nSitesConstr
1
distanceUnitkm
productUnitm³
sourcingPriority
FALSE
toSiteTranspCoeff 0,5
statsDistanceStep 100
latLonOffset
100
newSiteIcon
2
name
type
GFAWithRoads
scenario PB GFA Level 2 with Solutions
statisticsSettings
GFA_FLOWS::true;d;f
GFA_NEW_SITES::true;d;f
GFA_DISTANCE_BY_DEMAND::true;d;f
GFA_DEMAND_BY_DISTANCE::true;d;f
GFA_TOTAL_DEMAND_BY_DISTANCE::true;d;f
Units settings
Currency::USD
Volume::m³Time::day Distance::km
timeType All periods
startPeriod
endPeriod
startDate 2018-01-01T00:00
stopDate 2018-12-31T00:00
dashboardData
Page name Chart type Accumulative
Stats namesLayout dataDetalizationFilters
Chart name
dashboardData
Product Flows
CUSTOM_TABLE
TRUE GFA_FLOWS0,0,36,8
Product Flows
dashboardData
New Site Locations
CUSTOM_TABLE
TRUE GFA_NEW_SITES
0,0,36,8
New Site Locations
dashboardData
Distance Coverage
CUSTOM_TABLE
by Demand
TRUE GFA_DISTANCE_BY_DEMAND
0,0,36,8
Distance Coverage by Demand
dashboardData
Demand Coverage
CUSTOM_TABLE
by Distance
TRUE GFA_DEMAND_BY_DISTANCE
0,0,18,8
Demand Coverage by Distance
dashboardData
Demand Coverage
CUSTOM_TABLE
by Distance
TRUE GFA_TOTAL_DEMAND_BY_DISTANCE
0,0,18,8
Total Demand Coverage by Dista
preProcessor
postProcessor
Total Demand Coverage by Distance
customType
name
type
Custom
scenario PB GFA Level 2 with Solutions
statisticsSettings
GFA_FLOWS::true;d;f
GFA_NEW_SITES::true;d;f
GFA_DISTANCE_BY_DEMAND::true;d;f
GFA_DEMAND_BY_DISTANCE::true;d;f
GFA_TOTAL_DEMAND_BY_DISTANCE::true;d;f
LINEAR_COSTS::true;d;f
Flows Details::true;d;f
Sites Initial::true;d;f
Units settings
Currency::USD
Volume::m³Time::day Distance::km
timeType All periods
startPeriod
endPeriod
startDate 2019-01-01T00:00
stopDate 2019-12-31T00:00
dashboardData
Page name Chart type Accumulative
Stats namesLayout dataDetalizationFilters
Chart name
dashboardData
Log
preProcessor
postProcessor
Sites Fix::true;d;f
Storage by Product::true;d;f
Production Production
cost::true;d;f
Multiple
flows::true;d;f
Flows
Working
Constraints::true;d;f
Sites::true;d;f
Multiple Storages
Demand::true;d;f
Constraints::true;d;f
VEHICLES_FLOWS::true;d;f
Chart name
Named Expressions::true;d;f
Objective Members::true;d;f
Overall Stats::true;d;f
Flows Amount::true;d;f
DAILY_VEHICLES_SHIPPED::true;d,Type,Object,Vehicle
DAILY_VEHICLES_USAGE::true;d,Type,Object,Vehicle
TRAVELLED_DISTANCE::true;d,Type,Object,Vehicle
DAILY_PRODUCTS_SHIPPED_INTERNAL::true
AVAILABLE_INVENTORY_AMOUN
type;f
type;f type
CURRENT_BACKLOG_PRODUCTS::true;d,Type,Object,Product,Period;f
MAX_CAPACITY_VOLUME::true;d,Type,Object;f
ON_HAND_INVENTORY_VOLUME::true;d,Type,Object,Product,Period;f
FACILITY_CO2_STATS::true;d,Type,Object,Period;f
STORING_CO2_PER_M3_STATS::true;d,Type,Object,Product,Period;f
MAX_CAPACITY_INTERNAL2::true;d,Type,Object,Period;f
FACILITY_COSTS::true;d,Type,Object,Period;f
CARRYING_COSTS::true;d,Type,Object,Produ
TRANSPORTATION_COSTS::true;d
OTHER_COSTS::true;d,Type,Object;f
REVENUE::true;d,Type,Object,Product;f
PRODUCTS_LOST::true;d,Type,Object,Product;f
ORDERS_LOST::true;d,Type,Object,Product;f
DAILY_INCOMING_REPLENISHMENT_PRODUCTS::true;d,Type,Object,Product,P
DAILY_INCOMING_REPLENISHMENT_ORDERS::true;d,Type,Object,P
DAILY_PRODUCTS_SHIPPED::true;d,Type,Object,Produc
PRODUCT_FLOWS_TABLE::true;d,Object;f
INVENTORY_PURCHASES::true;d,
INITIAL_COSTS::true;d,Type,Object;f
DAILY_ITEMS_RECEIVED::true;d,Type,Object,Product,Period;f
DAILY_ORDERS_RECEIVED::true;d,Type,Object,Product,Period;f
INTERESTS_STATS::true;d,Type,Object;f
DAILY_OUTGOING_REPLENISHMENT_PRODUCTS::true;d,Type,Object,Product,P
DAILY_OUTGOING_REPLENISHMENT_ORDERS::true;d,Type,Object,P
DAILY_ORDERS_SHIPPED::true;d,Type,Object,Product,V
LOADING_TIME_VEHICLE::true;d,Type,Objec
UNLOADING_TIME_VEHICLE::tru
GATES_BUSY::true;d,Type,Object,Staff
GATES_IDLE::true;d,Type,Object,Staff
CURRENT_BACKLOG_ORDERS::true;d,Type,Object,Product,Period;f
CLOSURE_COSTS::true;d,Type,Object;f
type;f ORDERED_PRODUCTS_SENT::true;d,Type,Object,Product,Period;f
type;f PRODUCTS_BULLWHIP_EFFECT::true;d,Type,Object,Product;f
INPUT_PROCESSING_COSTS::true;d,Type,Object,Produc
PROCESSING_CO2_INPUT_STATS::true;d,Typ
PROCESSING_CO2_OUTPUT_STA
CLOSURE_CO2::true;d,Type,Object;f
INITIAL_CO2::true;d,Type,Object;f
OTHER_CO2::true;d,Type,Object;f
TRANSPORTATION_CO2::true;d,Type,Object,Vehicle
TOTAL_COSTS::true;d,Type,Object;f
OUTPUT_PROCESSING_COSTS::true;d,Type,Object,Product,Period;f
Shipments schedule::false;d,Object;f
PRODUCTION_COSTS::true;d,Type,Object,Pr
type,Destination;f
PRODUCED::true;d,Type,Object,P
PRODUCTION_REQUESTS::true;d,Type,Object,Product,Period;f
PRODUCTION_LINE_BUSY_TIME::true;d,Type,Object,Product,Period;f
PRODUCTION_LINE_IDLE_TIME::true;d,Type,Object,Product,Period;f
PRODUCED_ORDERS::true;d,Type,Object,Product,Period;f
PRODUCTION_REQUEST_ORDERS::true;d,Type,Object,Product,Period;f
PRODUCTION_CO2::true;d,Type,Object,Product,Period;f
STAFF_BUSY_TIME::true;d,Type,Object;f
STAFF_IDLE_TIME::true;d,Type,Object;f
Utilized Volume (Yogurt Factory):
Delayed Batches
DC Rating
(Yogurt
(Online
ZONE_LOAD::true;d,Type,Object,Zone;f
Factory)::true;d,Type,Object;f
Shop)::true;d,Type,Object;f
BUSY_STAFF::true;d,Type,Object,Staff
ZONE_CAPACITY::true;d,Type,Object,Zone;f
STAFF_TOTAL::true;d,Type,Object,Staff
CUSTOMER_REVENUE::true;d,Type,Object,Product,Perio
type;f CUSTOMER_DELAYED_ORDERS::true;d,Type
CUSTOMER_IN_TIME_ORDERS::t
type;f
CUSTOMER_ORDERS_TOTAL::true;d,Type,Object,Product,Period;f
CUSTOMER_DELAYED_PRODUCTS::true;d,Type,Object,Product,Source,Period;f
CUSTOMER_IN_TIME_PRODUCTS::true;d,Type,Object,Product,Source,Period;f
CUSTOMER_PRODUCTS_TOTAL::true;d,Type,Object,Product,Period;f
ORDERS::true;d,Type,Object,Product,Period;f
ORDERED_PRODUCTS::true;d,Type,Object,Product,Period;f
DROPPED_ORDERS::true;d,Type,Object,Product,Source,
DROPPED_ORDERED_PRODUCTS::true;d,Typ
LEAD_TIME::true;d,Type,Object,P
SUCCESSFUL_ORDERS_SIZE::true;d,Type,Object,Product,Source,Period;f
SUCCESSFUL_ORDERS::true;d,Type,Object,Product,Source,Period;f
UNSUCCESSFUL_ORDERS_SIZE::true;d,Type,Object,Product,Source,Period;f
UNSUCCESSFUL_ORDERS::true;d,Type,Object,Product,Source,Period;f
Negative Feedback
Positive (Online
Feedback
No Feedback
Shop)::true;d,Type,Object;f
(Online
Demand
(Online
Shop)::true;d,Type,Object;f
Placed
Shop)::true;d,Type,Object;f
PRODUCT_VOLUMES::true;d,Pro
(Dropped Late Orders) by Cu
PRODUCT_COSTS::true;d,Product;f
PRODUCT_PRICES::true;d,Product;f
VEHICLE_VOLUMES::true;d,Vehicle
CASH::true;d,Period,Account;f
INTERESTS::true;d,Period,Account;f
ACCOUNT_PAYABLE::true;d,Period,Account;f
type;f
LOAN::true;d,Period,Account;f
ACCOUNT_RECEIVABLE::true;d,Period,Accou
EVENTS_TABLE::true;d,Object;f
TOTAL_INTERESTS_PAID::true;d,Period,Account;f
TOTAL_CO2::true;d,Object;f
EBITDA::true;d,Object;f
FACILITY_CO2::true;d,Object,Period;f
CARRYING_CO2::true;d,Object,Product,Period;f
INVENTORY_MINUS_BACKLOG_AMOUNT::true;d,Object,Product;f
INPUT_PROCESSING_CO2::true;d,Object,Product,Period
OUTPUT_PROCESSING_CO2::true;d,Object,P
GENERAL_ORDERS_SERVICE_LEV
GENERAL_PRODUCTS_SERVICE_LEVEL_ALPHA_TYPE::true;d,Object,Product,Source,Period;f
GENERAL_MONEY_SERVICE_LEVEL_BETA_TYPE::true;d,Object,Product,Source,Period;f
OPPORTUNITY_COSTS::true;d,Object,Product;f
GENERAL_COST_PER_ORDER::true;d,Object;f
GENERAL_COST_PER_PRODUCT::true;d,Object;f
GENERAL_ORDERS_SERVICE_LEVEL_BY_ELT::true;d,Object,Product,
GENERAL_PRODUCTS_SERVICE_LEVEL_BY_ELT::true;d,O
AVERAGE_ON_HAND_INVENTORY_DAYS::tru
AVERAGE_ON_HAND_INVENTOR
ELT_SERVICE_LEVEL_BY_REVENUE::true;d,Object,Product,Source,Period;f
AVAILABLE_INVENTORY_VOLUME_INTEGRAL::true;d,Object,Product,Period;f
MEAN_LEAD_TIME::true;d,Object,Product,Source;f
PRODUCTION_UTILIZATION::true;d,Object,Product,Period;f
TRANSPORT_UTILIZATION::true;d,Type,Object,Vehicle
VEHICLES_USAGE::true;d,Object,Vehicle
MAX_VEHICLES_USAGE::true;d,Object,Vehicle
Max lead time::true;d,Object,Product,Source
GATES_UTILIZATION::true;d,Obje
type;f
type;f
type;f
AVAILABLE_INVENTORY_CUSTOM::true;d,Object,Product,Period;f
AVAILABLE_INVENTORY_INTEGRAL_CUSTOM::true;d,Object,Product,Period;f
PRODUCED_CUSTOM::true;d,Type,Object,Product,Period;f
CASH_MINUS_LOAN::true;d,Period,Account;f
CASH_MINUS_INTERESTS::true;d,Period,Account;f
CASH_MINUS_LOAN_INTERESTS::true;d,Period,Account;f
LOAN_PLUS_INTERESTS::true;d,Period,Account;f
STAFF_UTILIZATION_DC_WITH_STAFF::true;
STAFF_UTILIZATION_EXTENDED_
SPACE_UTILIZATION::true;d,Object,Zone;f
PROFIT_AND_LOSS_STATEMENT::true;d,Object;f
SAFETY_STOCK_INVENTORY_BASED::true;d,Type,Object,Product,Period;f
DC

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Complete legal documents for business: Answer questions by using provided guide.

Description

Follow requirement by following attached steps: Create 20 slides power point presentation for case study 1 (Blue mood clothing), type 5-6 doubles space pages of legal analysis using APA format 12 font for case study 2 (Carz Bazaar), type 1/2 page of discussion on finding on Carz Bazzar.

All work must be free of plagiarism.

Unformatted Attachment Preview

Project 1: Introduction to the Legal
Environment of Business
Step 3: Review Case One: Blue Mood
Clothing, Inc.
Now that you’ve finished your skills gap analysis and GAP survey, you
take some time to collect your thoughts and review the first case Vice
President Dodger assigned to you. First, you need an introduction to the
legal environment of business. Next, you open the Blue Mood Clothing,
Inc. case file to assess the details of this assignment.
Upon completing your initial review of the file, you begin thinking about
the legal issues contained in the file. In the next step, you will gather the
information you need to answer the questions from the VP.
Step 4: Gather and Analyze
Information
As you read through the materials, try to begin answering the questions
Vice President Dodger asked you. You will likely encounter many new
legal concepts, so take notes about which sections apply to this case so
that you can easily refer back to them when you begin to write your
presentation. The VP’s precise questions about the legal issues are as
follows:
•
Can Colossal Corporation terminate Alex without any notice or a hearing?
Why or why not? This question relates to employment-at-will.
•
Did Alex, Nick, Bill, or Juanita commit any crimes and, if so, which crimes
did each person commit? Fully explain your answer for each person as
you explore the subject of business criminal law.
•
What defenses, if any, might the relevant persons allege in response to
the crimes you identified? Fully explain your answer for each person.
•
Did Alex, Nick, Bill, or Juanita commit any intentional torts and, if so,
which intentional torts did each person commit? Read about the law of
tortsin order to make your determinations.
•
What defenses, if any, might the relevant persons allege in response to
the intentional torts you identified? Fully explain your answer for each
person.
•
Can anyone collect damages for the intentional torts? Who can collect and
whom would they sue? Detail the specific damages that may be available
to potential plaintiffs as you read about tort damages.
In the next step, you will formalize your thoughts so that they are ready
to put into your presentation.
Step 5: Focus on Your Rationale and
Conclusions: Create Your Outline
You’ve finished your research. You’ve reflected on how the facts and the
law come together in this situation. You’ve analyzed the possible
arguments and determined which seem most reasonable. Now it is time
to formulate these arguments, addressing all the issues raised by the
narrative in the Blue Mood Clothing, Inc. case file Vice President Dodger
gave you.
Outline your presentation to the leadership team, either on paper or in a
Word document; don’t make the PowerPoint yet. Review your outline to
make certain it covers all relevant points and progresses in a logical
order. Identify the major bullet points that you will highlight on your
slides, and allocate the appropriate supporting information to each bullet
point—make sure that you have adequately covered all the relevant
arguments or reasons needed to support them. In the next step, you’ll use
your outline to create the PowerPoint presentation for the VP.
Step 6: Communicate Your Findings
and Conclusions to the Vice
President of Colossal Corporation:
Create Your PowerPoint
You have finished getting all of your ideas organized surrounding the
Blue Mood Clothing case when you receive an email with delivery
instructions from Vice President Dodger:
INBOX (1 NEW EMAIL)
From: Kenneth Dodger, Vice President, Colossal Corporation
To: You
Just wanted to check in as you begin to communicate your findings and
conclusions on the Blue Mood Clothing case.
I’d like you to use your outline and research notes from your work on this
case to prepare a narrated PowerPoint for the senior leadership team. As
you will not deliver this in person, it will need to follow the form of an
asynchronous presentation.
Further, here is a list of additional requirements I need you to follow to
meet standard presentation protocol:
•
Include a title slide, with your name on it, introducing the presentation.
•
On the presentation slides, include only the major bullet points for each
issue.
•
Include no more than 20 slides.
•
Use your narration to provide the supporting rationale for each major
bullet point.
•
Include a script of your narration in the notes section of the PowerPoint.
•
Title your files using this protocol:
yourlastname_BlueMoodPowerPoint_date.
•
The final slide must present a clear summary of your major conclusions
and any recommendations.
You should be prepared to answer questions about your presentation
after you have submitted it. That should be all for now.
Looking forward to seeing the final product,
Ken
Step 7: Review Case Two: Carz
Bazaar
Feeling proud of your growing knowledge of business law and your work
on the Blue Mood Clothing case, you move on to your next assignment.
You open the Carz Bazaar case file to review the facts of the situation.
Once you have fully assessed the situation in the Carz Bazaar case,
proceed to the next step, where you will gather the information you need
to analyze the legal questions of the case.
Step 8: Gather and Analyze
Information
As you read through the materials, try to begin answering the questions
posed below.
You will likely encounter many new legal concepts, so take notes about
which sections apply to this case so that you can easily refer back to them
when you begin to write your analysis.
In all legal cases, there are disputes about the facts and the law. In this
case, we can assume the facts stated in our case file are accurate, so we
just need to decide what law applies and how the law can be interpreted
to support the plaintiffs’ and defendant’s arguments. The issue of who
caused the accident has been settled. Wilson caused the accident, so the
issue before us is whether Wilson’s employer can be held responsible for
his actions.
•
What are the arguments in favor of the plaintiffs (the accident victims)?
•
What are the arguments in favor of the defendant (Carz Bazaar)?
Read about legal responsibilities of agents and employees to help you
answer these questions.
In the next step, you’ll formalize your thoughts so that they are ready to
put into your presentation.
Step 9: Create and Submit Your Legal
Analysis
As you begin to finalize your findings from the Carz Bazaar case, you receive an email from Vice
President Dodger:
INBOX (1 NEW EMAIL)
From: Kenneth Dodger, Vice President, Colossal Corporation
To: You
Good to see your continued progress on these cases.
As you prepare to submit your findings for the Carz Bazaar incident, I wanted to give you some clear
delivery instructions.
As in the previous case, I’d like you to use your outline and research notes from your work on this
case to prepare your written analysis.
Maintaining company procedure, I’d also like you to meet the following requirements for this
deliverable:
•
•
•
•
Please divide your analysis into two parts: Part I: Arguments for the Plaintiffs and Part II:
Arguments for the Defendant.
Support your conclusion with references to legal principles and laws. Cite references to
course materials and cases using APA format.
The analysis should be no more than seven pages (double spaced, 12-point font; the
reference list does not count towards the page limit).
Title your file using this protocol: yourlastname_CarzBazaar _date.
Following this submission, I would like you to participate in a discussion with your fellow Colossal
Company colleagues to see if we can reach a consensus about the winner of this case.
I hope your work to this point has been rewarding. I’ve always found that consideration and
appreciation of ethical practice in a global market is the key to successful business.
Best,
Ken
Discussion with Colleagues
After your careful analysis of the case in the previous steps, Vice
President Dodger would like your opinion on the likely outcome of the
case if it were to be brought to court and decided by a judge. Provide a
full legal analysis and explanation for the outcome you expect. Discuss
your opinion with your colleagues so the VP can evaluate any consensus
in the assessment of the facts.
Go to the discussion entitled Carz Bazaar, and create a new topic entitled
“Carz Bazaar [insert your last name].” Decide in favor of either the
plaintiffs or defendant and explain why you made this decision. To
complete this step, post your own decision, read the opinions of your
classmates, and respond to at least two of your classmates’ postings.
These posts can be as long or as short as you need in order to effectively
make your points
Step 10: Discuss Carz Bazaar Case
Outcome
Discussion with Colleagues
After your careful analysis of the case in the previous steps, Vice
President Dodger would like your opinion on the likely outcome of the
case if it were to be brought to court and decided by a judge. Provide a
full legal analysis and explanation for the outcome you expect. Discuss
your opinion with your colleagues so the VP can evaluate any consensus
in the assessment of the facts.
Go to the discussion entitled Carz Bazaar, and create a new topic entitled
“Carz Bazaar [insert your last name].” Decide in favor of either the
plaintiffs or defendant and explain why you made this decision. To
complete this step, post your own decision, read the opinions of your
classmates, and respond to at least two of your classmates’ postings.
These posts can be as long or as short as you need in order to effectively
make your points.
Course Resource
Print
Blue Mood Clothing, Inc
Notice: Contains Confidential Information
Blue Mood Clothing, Inc., a company devoted to producing positive,
mood-altering apparel and various other clothing items, is a wholly
owned subsidiary of Colossal Corporation. Blue Mood Clothing’s most
famous and best-selling product is the Breezer—a skin-tight shirt with an
air ventilation system that allows the breeze to pass through the shirt.
Colossal Corporation has uncovered an incident of theft at Blue Mood
Clothing: approximately one month ago, over five thousand Breezers
were stolen from Blue Mood Clothing’s Atlantic City, New Jersey,
warehouse.
Shortly after the theft was discovered, Colossal Corporation’s internal
investigator, Bill, found an online advertisement for the sale of exactly
five thousand Breezers, described as shirts with an “air ventilation
system that allows a cooling breeze to pass through the shirt.” Bill called
the contact on the website and set up a meeting with the seller, Nick
Johnson. When Bill, under the guise of being an interested purchaser of
the Breezers, inquired about Nick’s distributor, Nick did not hesitate to
reveal that he purchased the Breezers from Juanita Winfrey, his long-time
business associate. Bill inspected the five thousand Breezers, and
confirmed they were indeed the same Breezer products that were stolen
from the warehouse. He then requested a price quote from Nick and
asked Nick to hold the products for him for seven days. Nick agreed.
That same afternoon, before additional investigation, Bill sent an email
intended solely to be sent to the vice president of Blue Mood Clothing,
Inc., but he accidentally hit “reply all” to a previous message, and sent the
email to every employee at Blue Mood Clothing, Inc., over two hundred
people. The email stated, among other things, that “Nick Johnson was a
thief and had an extensive criminal record in New Jersey. He stole the five
thousand Breezers. I will continue my investigation tomorrow.” This
statement was not true. Nick’s old friend from high school, who worked at
Blue Mood Clothing, Inc., forwarded this message to Nick, who became
worried about his business and reputation.
Bill arranged a meeting with Juanita the very next day, during which he
posed as an interested clothing buyer. He asked Juanita if she had any
Breezer distributors she could recommend. Juanita said that she works
directly with a Blue Mood Clothing sales agent named Alex Ridgefield, and
that she recently purchased five thousand Breezers from him at a fair
price. Juanita also said that Alex is quite interested in expanding his
business with her, and would provide Bill with a great deal.
After his meeting with Juanita, Bill checked the personnel records at Blue
Mood Clothing and identified Alex Ridgefield as a low-level warehouse
employee who has been with the company for over 20 years. Alex’s
personnel record is spotless, with no prior personnel issues and no
complaints. Alex is an at-will employee who is in charge of night security
at the Atlantic City warehouse and has no history in sales. As a night
security guard, Alex is responsible for protecting the warehouse from
theft and is not permitted to sell products. After further investigation, Bill
found company emails between Juanita and Alex in which Alex posed as a
sales agent. Reading the emails, it became obvious that neither Juanita
nor Nick knew that the five thousand Breezers were stolen, and that both
bought the Breezers for fair-market value. Bill then collected video from
all of Alex’s shifts and was able to locate a film of Alex packing the
Breezers into his personal minivan and driving them out of the
warehouse parking lot.
Your task is to research the legal issues surrounding the stolen property.
It is up to you to decipher which laws have been broken and deduce any
potential remedies. Vice President Dodger wants you to prepare a
narrated PowerPoint to present this information to the senior leadership
team. Because of the sensitive nature of this case, the vice president has
asked you to operate with total confidentiality and without involving the
legal department.
Course Resource
Print
Carz Bazaar
Notice: Contains Confidential Information
Colossal Company subsidiary Carz Bazaar, a new and used car dealership,
hired Charles Wilson to perform various duties, such as cleaning and
gassing vehicles, moving vehicles from one lot to another, and
maintaining the showroom and vehicle lots. In this position, Wilson had
access to keys to the vehicles through a key-control procedure. Under this
procedure, an attendant keeps the keys in a control shack. When any
employee wants to move a company vehicle, the attendant inputs
information into a template request form. The information includes the
date, time, stock number of the vehicle, name of the employee checking
out the vehicle, and the destination of the vehicle. For example, the
vehicle might be taken to a body shop for repairs, to a gas station, or to a
company lot at a different location. Every time an employee checks out a
vehicle, the reason must be for company business use. It is not necessary
to put the expected return time on the form unless a vehicle was expected
to be gone for a long time. Once the attendant has completed the form,
she gives the keys to the employee who has requested them. When the
vehicle is returned, the attendant indicates in the log that the vehicle was
returned and replaces the keys. Sometimes vehicles are gone for more
than one day. Some vehicles may be removed permanently if they are sold
from another lot. In these cases, the managers of the other lots call to let
the attendant know that the vehicle will not be coming back. Sometimes
employees drive cars back and leave the keys with other employees to
return to the attendant. This practice was acceptable to the dealership.
One day when Gina Mitchell was the attendant in charge, Wilson asked
her if he could use a car for 30 minutes on his lunch break to go to his
mother’s house. The attendant told him it was okay as long as he brought
it back because, otherwise, she could get in trouble. Since Wilson only
wanted the car for 30 minutes and she trusted him, she did not make any
entry about this trip on the computer. Wilson took the car and left. On his
way back to the dealership, Wilson rear-ended a car stopped at a stop
light, causing injuries to the driver and a passenger. Wilson told a police
officer at the scene of the accident that he was on a lunch break from his
job and that he had permission to drive the car, but his boss was not
aware he had the car.
The injured driver and passenger sued Carz Bazaar on the grounds that it
was responsible for the injuries caused by Wilson.

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FIN 500W Washington University Carna Robotica Case Study

Description

Required Readings

  1. Venture Capital Deal Algebra by Brad Feld (at Feld Thoughts blog) | Foundry Group
  2. Understanding Valuation: A Venture Investor’s Perspective by Callow, A Dana Jr. and Michael Larson
    Boston Millennia Partners White Paper
  3. What Is A Good VC Return by Fred Wilson (at AVC blog) | Union Square Ventures
  4. Funds Flail at Valuation by Grind, Kirsten | Wall Street Journal | Oct. 29, 2015

Case Materials

Carna Robotics Business Plan

Carna Robotics Audited Financials

Review the balance sheet, income statement, and cash flow statement of Carna Robotics, and the contents of footnote 9 regarding the company’s common and convertible preferred stock. The remainder of the financial statements are provided solely for completeness and future reference.

Case Background

Based upon your recommendation after a review of the business plan, your partner has agreed that the Carna Robotics opportunity may align to the investment strategy of your fund, and has asked you to conduct additional analysis. He is particularly focused on the valuation of the most recent financing and the ability to project long-term revenue and profitability.

Homework Instructions

After reading the required readings and case background, and reviewing the assigned portions of the Carna Robotics business plan and financial statements, use those materials, your own knowledge, and any further research you may wish to conduct, to answer the following questions.

Please be concise in your responses, focusing on key facts and interpretations rather than repeating extensive contents of the readings. The maximum length of your entire response is limited to one page of 12-point text double-spaced. (It is not necessary to repeat the questions in your response.) You may attach an additional page of calculations supporting your answer if you choose.

When solving the homework, please note the following regarding premoney and postmoney valuations:

  • The pre-money of a successive round will not necessarily be (in fact most often will not be) the same as the post-money valuation of the prior round.
  • The share price of the successive round will not necessarily be (in fact most often will not be) the same as the share price of the prior round.

Homework Assignment

  1. Unrelated to the Carna Robotics case, consider a planned series B financing in a business that has the following capitalization:

    Founders – 950,000 common shares
    Current Management – 300,000 common shares
    Series A Investor – 750,000 Series A preferred shares
    Total shares – 2,000,000 fully diluted shares

    The Series A investor provided $1 million of financing. Current management was hired in connection with the Series A financing; assume their shares were issued immediately prior to the closing of Series A.

    Your venture fund plan to provide a $3 million Series B financing and have settled upon a $7 million pre-money valuation. Immediately prior to the Series B financing (in other words, at the sole expense of the other pre-existing shareholders), you want to increase current management’s ownership share such that it will constitute 17% of the post-transaction capitalization.

    Please calculate the following:

    (i) The price per share of the Series A financing.
    (ii) The postmoney valuation of the Series A financing.
    (iii) The premoney valuation of the Series A financing.
    (iv) The postmoney valuation of the Series B financing.
    (v) The percentage ownership you will acquire in the Series B financing.
    (vi) The percentage ownership that will be retained by the combination of the founders, the current management, and the Series A investor.
    (vii) The number of additional shares that should be issued to management.
    (viii) The number of shares that you should purchase in the Series B financing.
    (ix) The price per share of the Series B financing.

  2. Regarding Carna Robotics, estimate the pre- and post-money valuation of the Series E preferred stock financing, treating series E, E1, and E2 as a single series and financing event.
  3. Propose a method for estimate Carna Robotics’ revenue and profit over the next five years. It is not necessary to develop an actual projection; only to specify the inputs, metrics and/or methods that you would use to do so. You may submit this answer in narrative or tabular numerical form, as you prefer.
  4. Did any of the information contained in the detailed financial statements and capitalization information cause you to adjust your opinion of the investment opportunity? Please explain why or why not.

Unformatted Attachment Preview

Venture Capital Deal Algebra (from the
blog, Feld Thoughts)
Fred Wilson wrote a useful post on valuation today. It reminded me of a document I had
Dave Jilk write when he was doing some work for me. I decided to write this “bladon”
(Blog Add-on) post – inspired by Fred. Please read Fred’s post first – it lays the
groundwork for why VCs do things this way.
I’ve found that even sophisticated entrepreneurs didn’t necessary grasp how valuation
math (or “deal algebra”) worked. VCs talk about pre-money, post-money, and share
price as though these were universally defined terms that the average American voter
would understand. To insure everyone is talking about the same thing, I started passing
out this document. Recognize that this is about the math behind the calculations, not the
philosophy of valuation (which Fred’s blog addresses).
In a venture capital investment, the terminology and mathematics can seem confusing
at first, particularly given that the investors are able to calculate the relevant numbers in
their heads. The concepts are actually not complicated, and with a few simple algebraic
tips you will be able to do the math in your head as well, leading to more effective
negotiation.
The essence of a venture capital transaction is that the investor puts cash in the
company in return for newly-issued shares in the company. The state of affairs
immediately prior to the transaction is referred to as “pre-money,” and immediately after
the transaction “post-money.”
The value of the whole company before the transaction, called the “pre-money
valuation” (and similar to a market capitalization) is just the share price times the
number of shares outstanding before the transaction:
Pre-money Valuation = Share Price * Pre-money Shares
The total amount invested is just the share price times the number of shares purchased:
Investment = Share Price * Shares Issued
Unlike when you buy publicly traded shares, however, the shares purchased in a
venture capital investment are new shares, leading to a change in the number of shares
outstanding:
Post-money Shares = Pre-money Shares + Shares Issued
And because the only immediate effect of the transaction on the value of the company
is to increase the amount of cash it has, the valuation after the transaction is just
increased by the amount of that cash:
Post-money Valuation = Pre-money Valuation + Investment
The portion of the company owned by the investors after the deal will just be the
number of shares they purchased divided by the total shares outstanding:
Fraction Owned = Shares Issued /Post-money Shares
Using some simple algebra (substitute from the earlier equations), we find out that there
is another way to view this:
Fraction Owned = Investment / Post-money Valuation = Investment / (Pre-money
Valuation + Investment)
So when an investor proposes an investment of $2 million at $3 million “pre” (short for
premoney valuation), this means that the investors will own 40% of the company after
the transaction:
$2m / ($3m + $2m) = 2/5 = 40%
And if you have 1.5 million shares outstanding prior to the investment, you can calculate
the price per share:
Share Price = Pre-money Valuation / Pre-money Shares = $3m / 1.5m = $2.00
As well as the number of shares issued:
Shares Issued = Investment /Share Price = $2m / $2.00 = 1m
The key trick to remember is that share price is easier to calculate with pre-money
numbers, and fraction of ownership is easier to calculate with post-money numbers; you
switch back and forth by adding or subtracting the amount of the investment. It is also
important to note that the share price is the same before and after the deal, which can
also be shown with some simple algebraic manipulations.
A few other points to note:
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Investors will almost always require that the company set aside additional
shares for a stock option plan for employees. Investors will assume and
require that these shares are set aside prior to the investment, thus diluting
the founders.
If there are multiple investors, they must be treated as one in the calculations
above.
To determine an individual ownership fraction, divide the individual investment
by the post-money valuation for the entire deal.
For a subsequent financing, to keep the share price flat the pre-money
valuation of the new investment must be the same as the post-money
valuation of the prior investment.
For early-stage companies, venture investors are normally interested in
owning a particular fraction of the company for an appropriate investment. The
valuation is actually a derived number and does not really mean anything
about what the business is “worth.”
Report of Independent Registered Public Accounting Firm
The Board of Directors
Carna Robotics, Inc.
We have audited the accompanying balance sheets of Carna Robotics, Inc. (the Company) as of
December 31, 2017 and 2018, and the related statements of operations and cash flows for each of the
three years in the period ended December 31, 2018. These financial statements are the responsibility of
the Company’s management. Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Carna Robotics, Inc. at December 31, 2017 and 2018, and the results of its operations
and its cash flows for each of the three years in the period ended December 31, 2018 in conformity with
U.S. generally accepted accounting principles.
/s/ [REDACTED – MAJOR US AUDIT FIRM]
March 26, 2019, except for Note 17
as to which the date is July 15, 2019
CARNA ROBOTICS, INC.
BALANCE SHEETS
December 31
(Unaudited)
2017
Assets
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net of allowance of $1,650,
$116,725 and $236,584 in 2017, 2018, and June 30,
2019, respectively
$ 21,356,247
5,124,365
436,146
—
2,360,607
470,277
559,721
155,331
4,430,228
876,264
3,333,658
149,515
4,224,025
2,661,855
32,101,153
699,582
—
—
120,137
32,502,156
2,309,467
1,944,444
465,993
101,359
36,567,004
2,178,219
1,877,778
299,030
134,981
$ 32,920,872
$ 37,323,419
$
41,057,012
$
$
$
1,385,203
2,557,369
4,834,254
2,008,110
Total current assets
Property and equipment, net
Intangible assets
Long-term receivables
Other assets
Liabilities and stockholders’ equity
Current liabilities:
Current maturities of long-term debt
Accounts payable
Accrued liabilities
Deferred contract revenue
Total current liabilities
Long-term debt, less current maturities
Other liabilities
Stockholders’ equity:
Convertible preferred stock, issued in series, par value
$0.001; 65,000,000 shares authorized at December 31,
2017 and 2018 and 70,000,000 shares authorized at
June 30, 2019 (unaudited); 51,635,017, 61,055,286 and
66,436,116 shares issued and outstanding at
December 31, 2017 and 2018, and June 30, 2019
(unaudited), respectively; liquidation preference of
$111,283,107, $146,819,436, and $168,972,105 at
December 31, 2017 and 2018 and June 30, 2019
(unaudited), respectively
Common stock, par value of $0.001; 80,000,000 shares
authorized at December 31, 2017 and 2018 and
95,000,000 shares authorized at June 30, 2019
(unaudited); 1,389,923, 1,515,150, and
1,598,736 shares issued at December 31, 2017 and
2018, and June 30, 2019 (unaudited), respectively;
1,385,930, 1,496,834, and 1,580,305 shares
outstanding at December 31, 2017 and 2018, and
June 30, 2019 (unaudited), respectively
Additional paid-in capital
Deferred compensation
Treasury stock, 3,993, 18,316, and 18,431 shares at
December 31, 2017 and 2018, and June 30, 2019
(unaudited), respectively
Notes receivable from sale of stock
Accumulated deficit
Accumulated other comprehensive loss
Total stockholders’ equity
Total liabilities and stockholders’ equity
June 30 2019
$ 28,834,123
—
Current portion of long-term receivables
Inventories
Prepaid expenses and other current assets
Total assets
2018
904,311
1,505,361
2,556,332
1,652,000
2,289,314
1,697,497
4,936,233
814,393
$
21,220,777
4,977,174
6,618,004
2,281,321
14,901
9,737,437
2,243,768
75,786
10,784,936
4,646,292
180,089
51,635
61,055
66,436
1,390
88,448,394
(674,344)
1,515
113,921,587
(835,801)
1,599
130,043,230
(551,016)
(2,156)
(439,345)
(63,378,928)
—
(17,750)
(448,413)
(87,415,765)
—
(17,840)
(311,606)
(103,631,855)
(153,253)
24,006,646
25,266,428
25,445,695
$ 32,920,872
$ 37,323,419
See accompanying notes.
$
41,057,012
CARNA ROBOTICS, INC.
STATEMENTS OF OPERATIONS
Six Months Ended June 30
(Unaudited)
Year Ended December 31
2016
Systems revenue
Disposables, service and accessories
revenue
Other revenue
$
Costs of revenue
2017
—
$
2018
—
$
2018
3,808,036
$ 1,262,031
2019
$
6,147,352
—
—
18,900
—
480,941
725,900
141,109
725,900
835,473
—
—
—
18,900
39,760
5,014,877
4,051,313
2,129,040
1,583,504
6,982,825
4,977,431
—
(20,860)
963,564
545,536
2,005,394
Operating expenses:
Research and development
Sales and marketing
General and administrative
Stock-based compensation
13,831,016
926,859
2,575,800
622,299
14,325,389
2,230,565
4,461,625
483,638
13,541,398
5,986,518
4,893,830
492,168
5,422,036
2,382,355
2,213,179
246,610
9,614,709
5,426,795
2,974,176
254,541
Total operating expenses
17,955,974
21,501,217
24,913,914
10,264,180
18,270,221
(17,955,974)
950,776
—
(21,522,077)
434,470
(371,051)
(23,950,350)
375,361
(461,848)
(9,718,644)
177,840
(211,158)
(16,264,827)
271,205
(222,468)
Net loss
$ (17,005,198)
$ (21,458,658)
$ (24,036,837)
$ (9,751,962)
$ (16,216,090)
Net loss per common share:
Basic and diluted
$
$
$
$
$
Operating loss
Interest income
Interest expense
Shares used in computing net loss per
common share:
Basic and diluted
Analysis of stock-based compensation:
Research and development
General and administrative
Sales and marketing
Total stock-based compensation
(23.01)
739,088
(19.21)
1,117,301
(18.37)
1,308,805
(7.76)
1,256,490
1,498,313
215,520
35,156
3,865
$
528,115
69,763
24,421
$
416,626
67,012
—
$
345,064
134,312
12,792
$
174,402
67,156
5,052
$
622,299
$
483,638
$
492,168
$
246,610
See accompanying notes.
(10.82)
$
254,541
CARNA ROBOTICS, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30
Year Ended December 31
Cash flows from operating activities
Net loss
Adjustments to reconcile net loss to cash used
in operating activities:
Depreciation
Amortization
Stock-based compensation
Noncash research and development
services
Interest received on sale of stock
Loss on asset disposal
Changes in operating assets and liabilities:
Accounts receivable
Notes receivable
Inventories
Prepaid expenses and other
current assets
Other assets
Accounts payable
Accrued liabilities
Deferred revenue
Other
2016
2017
2018
2018
2019
$ (17,005,198)
$ (21,458,658)
$ (24,036,837)
$ (9,751,962)
$ (16,216,090)
253,441
—
622,299
406,766
—
483,638
447,786
55,556
492,168
49,501
(12,284)
—
—
(28,758)
—
—
(21,653)
—
—
(7,267)
—
(355,596)
—
—
(80,550)
—
(2,360,607)
(123,575)
(621,324)
(2,069,621)
(478,823)
—
(1,551,361)
(2,773,937)
172,779
206,203
(47,888)
(27,088)
260,797
1,551,274
547,600
1,912
(368,106)
(77,337)
169,638
468,440
826,000
(9,401)
(405,987)
18,778
192,136
2,379,901
(837,607)
60,885
(562,037)
17,370
325,301
140,595
(733,083)
(3,267)
(1,583,220)
(33,622)
859,872
(101,979)
1,193,717
104,303
(14,161,230)
(22,028,935)
(24,469,394)
(12,122,369)
(17,430,141)
Cash flows from investing activities
Purchase of equipment
Sale (purchase) of short-term investments, net
(665,436)
17,905,006
(308,512)
1,788,105
(2,057,671)
(5,124,365)
(910,771)
—
(272,531)
(6,062)
Net cash (used in) provided by investing
activities
17,239,570
1,479,593
(7,182,036)
(910,771)
(278,593)
3,874,627
(688,995)
1,829,690
(2,482,240)
366,769
(736,665)
2,000,000
(501,587)
Net cash used in operating activities
Cash flows from financing activities
Proceeds from long-term debt
Payments under long-term debt
Proceeds from issuance of stock and warrants,
net of issuance costs
Purchase of treasury stock
Payments received on notes receivable from
sale of common stock
—
—
20,557,273
(2,156)
17,521,148
—
235,555
—
246,610
24,829,113
(15,594)
385,679
66,666
254,541
—
16,847
18,100
15,456,674
—
15,954,981
(90)
11,500
12,585
12,585
11,500
119,960
20,566,617
20,719,365
24,173,554
15,098,278
17,573,264
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
period
23,644,957
170,023
(7,477,876)
2,065,138
5,019,143
28,664,100
28,834,123
28,834,123
21,356,247
Cash and cash equivalents at end of period
$ 28,664,100
$ 28,834,123
$ 21,356,247
$ 30,899,261
$ 21,220,777
Supplemental disclosures of cash flow
information:
Interest paid
$
—
$
371,051
$
394,287
$
211,158
$
114,615
$
—
$
—
$
2,000,000
$
—
$
—
Net cash provided by financing activities
Noncash acquisition of purchased
technology upon issuance of convertible
note payable
See accompanying notes.
(135,470)
CARNA ROBOTICS, INC.
NOTES TO FINANCIAL STATEMENTS
(Information as of June 30, 2019 and for the six months ended
June 30, 2018 and 2019 is unaudited)
1.
Description of Business
Carna Robotics, Inc. (the Company) designs, manufactures, and markets an advanced cardiology instrument control system
for the interventional treatment of coronary artery disease and arrhythmias. The Company also markets and sells various
disposable interventional devices, including catheters, guidewires and stent delivery devices, for use in conjunction with its
system. By 2018, the Company had received U.S. and European regulatory approval for the core components of its system.
Prior to 2018, the Company’s principal activities involved obtaining capital, business development, performing research
and development activities, and funding prototype development. As such, the Company was classified as a development-stage
company from its inception on June 13, 2005 through December 31, 2017. During 2018, the Company emerged from the
development-stage and began to generate revenue from the commercial launch of its systems.
2.
Summary of Significant Accounting Policies
Unaudited Interim Financial Information
The accompanying balance sheet as of June 30, 2019, the statements of operations and of cash flows for the six months
ended June 30, 2018 and 2019, and the statement of stockholders’ equity for the six months ended June 30, 2019 are unaudited.
The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the
opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly
the Company’s financial position and results of operations and cash flows for the six months ended June 30, 2018 and 2019.
The financial data and other information disclosed in these notes to consolidated financial statements related to the six month
periods are unaudited. The results for the six months ended June 30, 2019 are not necessarily indicative of the results to be
expected for the year ending December 31, 2019 or for any other interim period or for any future year.
Cash and Cash Equivalents
The Company considers all short-term deposits purchased with original maturities of three months or less to be cash
equivalents. The Company places its cash with high-credit-quality financial institutions and invests primarily in money market
accounts.
Short-Term Investments
In accordance with Statement of Financial Accounting Standards (SFAS) No. 115, Accounting for Certain Investments in
Debt and Equity Securities, the Company’s investment securities are classified as available-for-sale and are carried at market
value, which approximates cost. Realized gains or losses, calculated based on the specific identification method, were not
material for the years ended December 31, 2016, 2017, and 2018.
Accounts Receivable and Allowance for Uncollectible Accounts
Accounts receivable primarily include amounts due from hospitals and medical centers for acquisition of magnetic systems
and associated disposable device sales. Credit is granted on a limited basis, with most balances due within 30 days of billing.
The provision for bad debts is based upon management’s assessment of historical and expected net collections considering
business and economic conditions and other collection indicators.
Financial Instruments
Financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, accounts payable,
and long-term debt. The carrying value of such amounts reported at the applicable balance sheet dates app

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ACC 620 Southern New Hampshire University Stakeholders Equity Project

Description

9-1 Final Project Submission
Assignment

Task: Submit to complete this assignment

VII. Report for CEO

At the most recent strategic planning
meeting, the board of directors of your company has voted to issue
additional stock to raise capital for major expansions for the company
in the next five years. The board is considering $5 billion. Take the
most recent financial statements and prepare a set of projected
financial statements based on the given assumptions. The CEO requests
that you prepare a written report (including the financial statements)
for her.

    1. Generate a projected income statement based on the given scenario.
    2. Analyze the impact on the income statement based on the given scenario.
    3. Generate a projected statement of retained earnings based on the given scenario.
    4. Analyze the impact on the statement of retained earnings based on the given scenario.
    5. Generate a projected balance sheet based on the given scenario.
    6. Analyze the impact on the balance sheet based on the given scenario.
    7. Generate a projected cash flow statement based on the given scenario.
    8. Analyze the impact on the cash flow statement based on the given scenario.

For additional details, please refer to the Final Project Guidelines and Rubric document.

Unformatted Attachment Preview

ACC 620 Final Project Guidelines and Rubric
Overview
According to the AICPA (American Institute of Certified Public Accountants), a CPA in today’s environment must not only have a high level of technical
competence and a sense of commitment to service, but must also have good communications and analytical skills and the ability to work well with people.
Employers are looking for individuals who have the ability to analyze and evaluate complex business problems and the interpersonal skills and maturity to make
decisions in a client and customer service environment.
If you continue to use the company that you adopted in ACC 610, you will apply the technical competence and other skills required by today’s CPAs. Through
case-study analysis, you will develop skills such as communication, presentation, and interpersonal relations in conjunction with technical accounting knowledge.
If you have transferred directly into ACC 620 and have not had the opportunity to choose a company, or are choosing a different company than you used in ACC
610 you will do so at this time. Throughout ACC 620, you will apply the concepts you are learning using the financial data and business scenarios of a prominent
retail company. You may choose from Walmart, Kroger, Amazon, Costco, The Home Depot, CVS Health Corporation or Target.
ACC 620: Financial Reporting II is a continuation of ACC 610. In ACC 620, your focus in the final project will be on developing skills in critical thinking and applying
accounting theories and practices according to generally accepted accounting principles (GAAP). You will be analyzing situations and communicating results to
decision makers with an emphasis on stockholders’ equity, income measurement, income taxes, pensions, leases, and statements of changes in financial
positions.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Three, Five, and Seven. The final product will be submitted in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
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Analyze stockholder sections of balance sheets for how they inform stakeholders of equity positioning
Interpret income measurement for determining the accuracy of financial statements
Analyze the effect of income taxes and their impact on financial statement accounts for appropriate estimation and planning
Evaluate various pension plans for their implications on balance sheets and income statements
Differentiate between operating and capital leases for addressing their impact on balance sheets and income statements
Analyze complex financial statements for informing stakeholders in making economic decisions
Prompt
You will continue to work with the retail company you have chosen either in ACC 610 or at the beginning of this class. If you are transferring into SNHU’s
financial reporting courses, you will choose from five retail companies (Walmart, Kroger, Amazon, Costco, The Home Depot, CVS Health Corporation or Target).
This company will be yours throughout the Financial Reporting Series (ACC 610, ACC 620). You will adopt this company to apply learning concepts in authentic
scenarios. Through this assessment, you will continue building your Financial Reporting Series portfolio.
Your portfolio pieces for this project will include memos, spreadsheets, and a final report.
At the most recent strategic planning meeting, the board of directors of your company has voted to issue additional stock to raise capital for major expansions
for the company in the next five years. The board is considering issuing a total amount of stock worth $5 billion. The CEO has asked you to analyze the impact of
issuing this stock on the income statement, statement of retained earnings, balance sheet, and cash flow statement. Take the most recent financial statements
and prepare a set of projected financial statements based on the given assumptions.
Specifically, the following critical elements must be addressed:
I.
Stockholders’ Equity
A. Determine how your company got its initial financial start in terms of debt (liabilities) or equity (capital). Support your response.
B. Analyze the equity section of your company’s balance sheet as compared to your company’s industry average. Rate the company’s performance
against its competitors.
C. Review your company’s dividend policy and its history. Based on the information, discuss the trends over the past year.
II.
Income Measurement/Revenue Recognition
A. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) came together on a unified project to
outline the accounting principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. Research IAS-18,
Revenue, and discuss how it would apply to your company.
B. Review your company’s revenue over the past two years. Analyze the change in revenue (increase/decrease) and give the reasons for this
change.
C. Reflecting upon your company’s balance sheet, identify the unearned revenue accounts listed. How does your company handle the proper
accounting treatment with regard to recognizing revenue from unearned revenue accounts?
III.
Income Taxes
A. If Congress voted to eliminate corporate taxes, what would be the effect on your company’s income statement and balance sheet? Defend your
response.
B. Calculate the income tax rate for your chosen company. What effect will an increase in income of $2,000,000 have on your company?
C. What are the effects on the balance sheet and income statement? Justify your response.
D. How much did your company pay in foreign taxes last year? What percentage of its income is United States vs. foreign?
Leases
A. What are the differences between operating and capital leases?
B. Describe the particular leases of your company based on the liability section of your company’s balance sheet.
C. What impact have the leases had on the company’s financial statements for the most recent year?
D. Discuss the advantages and disadvantages of leasing a building versus purchasing one.
IV.
V.
Pensions
Address the following elements in the form of a memo to your CEO:
A. From your company’s financial information, what type of pension plan does it have? Discuss the reasons why your company has chosen this
particular plan.
B. What was the effect of the pension plan on your company’s financial statements? Defend your response.
C. Your CEO has informed you—the controller of your company—that the board of directors has made the decision to look at other options of
types of retirement plans. Investigate what other alternatives would be available, and determine which would be appropriate for your particular
company.
VI.
Statement of Cash Flows
A. From the perspective of an investor, determine whether or not you would invest in your chosen company based on the company’s Statement of
Cash Flows (SoCF). Support your opinion.
B. Review the company’s SoCF for any concerns that may need to be addressed. As controller of your company, prepare a memo to your CEO,
giving a summary report for possible recommendations.
VII.
Report for CEO
At the most recent strategic planning meeting, the board of directors of your company has voted to issue additional stock to raise capital for major
expansions for the company in the next five years. The board is considering $5 billion. Take the most recent financial statements and prepare a set of
projected financial statements based on the given assumptions. The CEO requests that you prepare a written report (including the financial statements)
for her.
A. Generate a projected income statement based on the given scenario.
B. Analyze the impact on the income statement based on the given scenario.
C. Generate a projected statement of retained earnings based on the given scenario.
D. Analyze the impact on the statement of retained earnings based on the given scenario.
E. Generate a projected balance sheet based on the given scenario.
F. Analyze the impact on the balance sheet based on the given scenario.
G. Generate a projected statement of cash flows based on the given scenario.
H. Analyze the impact on the statement of cash flows based on the given scenario.
Milestones
Milestone One: Stockholders’ Equity and Revenue Recognition
In Module Three, you will submit critical elements I and II for review by your instructor. It is important that you incorporate your instructor’s feedback from this
milestone into your final submission. This milestone will be graded with the Milestone One Rubric.
Milestone Two: Income Taxes and Pensions
In Module Five, you will submit critical elements III and V for review by your instructor. It is important that you incorporate your instructor’s feedback from this
milestone into your final submission. This milestone will be graded with the Milestone Two Rubric.
Milestone Three: Leases and Statement of Cash Flows
In Module Seven, you will submit critical elements IV and VI for review by your instructor. It is important that you incorporate your instructor’s feedback from
this milestone into your final submission. This milestone will be graded with the Milestone Three Rubric.
Final Submission: Financial Reporting Series Portfolio
In Module Nine, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product, including
critical element VII: Report for the CEO. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the
Final Project Rubric.
Deliverables
Milestone
One
Two
Three
Deliverable
Stockholders’ Equity and Revenue Recognition
Module Due
Three
Grading
Graded separately; Milestone One Rubric
Five
Graded separately; Milestone Two Rubric
Leases and Statement of Cash Flows
Seven
Graded separately; Milestone Three Rubric
Final Submission: Financial Reporting Series
Portfolio
Nine
Graded separately; Final Project Rubric
Income Taxes and Pensions
Final Project Rubric
Guidelines for Submission: Your portfolio should be 6–10 pages (including spreadsheets, memos, and summary), double-spaced, with one-inch margins, 12point Times New Roman font, and APA format.
Critical Elements
Stockholders’
Equity: Initial
Financial Start
[ACC-620-01]
Exemplary
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
(100%)
Stockholders’
Equity: Industry
Average
[ACC-620-01]
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
(100%)
Stockholders’
Equity: Dividend
Policy
[ACC-620-01]
Meets “Proficient” criteria, and
discussion is exceptionally clear
and contextualized
(100%)
Income
Measurement/
Revenue
Recognition: IAS-18
[ACC-620-02]
Income
Measurement/
Revenue
Recognition:
Revenue
[ACC-620-02]
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
(100%)
Meets “Proficient” criteria, and
rationale is well supported with
concrete evidence
(100%)
Proficient
Determines whether the
company obtained its startup
financing from debt or equity
and supports response
(90%)
Analyzes the company’s equity
section as compared to the
industry average and accurately
rates the company’s
performance against
competitors
(90%)
Analyzes the company’s
dividend policy and its history
to discuss the trends over the
past year
(90%)
Discusses IAS-18’s application
to the company
(90%)
Needs Improvement
Determines whether the
company obtained its startup
financing from debt or equity,
but does not support response
(70%)
Analyzes the company’s equity
section as compared to the
industry average, but does not
accurately rate the company’s
performance against
competitors
(70%)
Analyzes the company’s
dividend policy and its history,
but does not discuss the trends
over the past year
(70%)
Discusses IAS-18’s application
to the company, but discussion
is cursory or lacks detail
(70%)
Not Evident
Does not identify how the
company obtained its startup
financing
(0%)
Analyzes the change in revenue
and gives the reasons for the
change
(90%)
Analyzes the change in revenue,
but does not give the reasons
for the change
(70%)
Value
4.8
Does not analyze the company’s
equity section
(0%)
4.8
Does not analyze the company’s
dividend policy
(0%)
4.8
Does not research IAS-18
(0%)
4.8
Does not analyze the change in
revenue
(0%)
4.8
Income
Measurement/
Revenue
Recognition:
Unearned Revenue
[ACC-620-02]
Meets “Proficient” criteria and
displays a nuanced
understanding of the
company’s internal processes
(100%)
Income Taxes:
Corporate Taxes
[ACC-620-03]
Meets “Proficient” criteria, and
defense is well supported with
quantitative evidence
(100%)
Income Taxes:
Increase in Income
[ACC-620-03]
Meets “Proficient” criteria, and
determination is well supported
with quantitative evidence
(100%)
Accurately calculates the
income tax rate for the
company and determines the
effect an increase in income
would have on the company
(90%)
Income Taxes:
Effects [ACC-620-03]
Meets “Proficient” criteria, and
justification is well supported
with quantitative evidence
(100%)
Accurately determines the
effects on the balance sheet
and income statement and
justifies response
(90%)
Income Taxes:
Foreign Taxes
[ACC-620-03]
Identifies unearned revenue
accounts listed as well as how
the company handles the
proper accounting treatment
with regard to recognizing
revenue from unearned
revenue accounts
(90%)
Accurately describes the effect
on the company’s income
statement and balance sheet if
Congress voted to eliminate
corporate taxes, and defends
response
(90%)
Accurately determines how
much the company paid in
foreign taxes last year and what
percentage of its income was
United States versus foreign
(100%)
Identifies unearned revenue
accounts listed, but does not
determine how the company
handles the proper accounting
treatment with regard to
recognizing revenue from
unearned revenue accounts
(70%)
Describes the effect on the
company’s income statement
and balance sheet if Congress
voted to eliminate corporate
taxes, but does not defend
response, description contains
inaccuracies, or defense is
illogical
(70%)
Calculates the income tax rate
for the company and
determines the effect an
increase in income would have
on the company, but calculation
or determination contains
inaccuracies
(70%)
Determines the effects on the
balance sheet and income
statement, but determination
contains inaccuracies, does not
justify determination, or
justification is illogical
(70%)
Determines how much the
company paid in foreign taxes
last year and what percentage
of its income was United States
versus foreign, but
determination contains
inaccuracies
(70%)
Does not identify unearned
revenue accounts listed
(0%)
4.8
Does not describe the effect on
the company’s income
statement and balance sheet
(0%)
4.8
Does not calculate the income
tax rate for the company
(0%)
4.8
Does not determine the effects
on the balance sheet and
income statement
(0%)
4.8
Does not determine how much
the company paid in foreign
taxes last year
(0%)
4.8
Leases: Operating
and Capital
[ACC-620-05]
Meets “Proficient” criteria, and
description is exceptionally
clear and contextualized
(100%)
Comprehensively describes the
differences between operating
and capital leases
(90%)
Leases: Particular
[ACC-620-05]
Meets “Proficient” criteria, and
description is exceptionally
clear and contextualized
(100%)
Describes the particular leases
of the company based on the
liability section of the
company’s balance sheet
(90%)
Leases: Impact
[ACC-620-05]
Meets “Proficient” criteria, and
defense is well supported with
concrete examples
(100%)
Comprehensively discusses the
impact the leases had on the
company’s financial statements
for the most recent year
(90%)
Leases: Building
[ACC-620-05]
Meets “Proficient” criteria and
uses concrete examples to
illustrate claims
(100%)
Comprehensively discusses the
advantages and disadvantages
of leasing a building versus
purchasing one
(90%)
Meets “Proficient” criteria and
shows a nuanced understanding
of the company’s decisionmaking rationale
(100%)
Meets “Proficient” criteria, and
defense is well supported with
concrete examples
(100%)
Discusses the type of pension
plan the company has and the
reasons why the company has
chosen that plan
(90%)
Accurately determines the
effect of the pension plan on
the company’s financial
statements and defends
response
(90%)
Pensions: Pension
Plan
[ACC-620-04]
Pensions: Effect
[ACC-620-04]
Describes the differences
between operating and capital
leases, but description is
cursory or lacks detail
(70%)
Describes the particular leases
of the company, but does not
base description on the liability
section of the company’s
balance sheet
(70%)
Discusses the impact the leases
had on the company’s financial
statements for the most recent
year, but discussion is cursory
or lacks detail
(70%)
Discusses the advantages and
disadvantages of leasing a
building versus purchasing one,
but discussion is cursory or
lacks detail
(70%)
Discusses the type of pension
plan the company has, but does
not discuss the reasons why the
company chose that plan
(70%)
Determines the effect of the
pension plan on the company’s
financial statements, but
determination lacks accuracy,
does not defend determination,
or defense is weak or illogical
(70%)
Does not describe the
differences between operating
and capital leases
(0%)
4.8
Does not describe the particular
leases of the company
(0%)
4.8
Does not discuss the impact the
leases had on the company’s
financial statements
(0%)
4.8
Does not discuss the
advantages and disadvantages
of leasing a building versus
purchasing one
(0%)
4.8
Does not identify the type of
pension plan the company has
(0%)
4.8
Does not determine the effect
of the pension plan on the
company’s financial statements
(0%)
4.8
Pensions: Other
Options
[ACC-620-04]
Meets “Proficient” criteria and
is well supported with concrete
examples
(100%)
Evaluates other types of
retirement plans available and
determines which would be
appropriate for the company
(90%)
Statement of Cash
Flows: Invest
[ACC-620-06]
Meets “Proficient” criteria, and
opinion is well supported with
concrete examples
(100%)
Determines whether or not to
invest in the company based on
the SoCF and supports opinion
(90%)
Statement of Cash
Flows:
Recommendations
[ACC-620-06]
Meets “Proficient” criteria, and
recommendations are well
supported and logical
(100%)
Composes a memo to the CEO
making recommendations that
would effectively resolve any
concerns identified in the SoCF
(90%)
Report for CEO:
Projected Income
Statement
[ACC-620-06]
Report for CEO:
Impact on the
Income Statement
[ACC-620-06]
Meets “Proficient” criteria and
cites specific, relevant examples
from the projected statement
(100%)
Report for CEO:
Projected Statement
of Retained Earnings
[ACC-620-06]
Report for CEO:
Impact on the
Statement of
Retained Earnings
[ACC-620-06]
Generates a projected income
statement based on the given
scenario
(100%)
Analyzes the impact on the
income statement based on the
given scenario
(90%)
Generates a projected
statement of retained earnings
based on the given scenario
(100%)
Meets “Proficient” criteria and
cites specific, relevant examples
from the projected statement
(100%)
Analyzes the impact on the
statement of retained earnings
based on the given scenario
(90%)
Evaluates other types of
retirement plans available, but
does not determine which
would be appropriate for the
company
(70%)
Determines whether or not to
invest in the company based on
the SoCF, but does not support
opinion, or support for opinion
is weak or illogical
(70%)
Composes a memo to the CEO
making recommendations to
address concerns identified in
the SoCF, but recommendations
would not effectively resolve
concerns
(70%)
Generates a projected income
statement, but does not use the
given scenario
(70%)
Analyzes the impact on the
income statement, but does not
base analysis on the given
scenario
(70%)
Generates a projected
statement of retained earnings,
but does not use the given
scenario
(70%)
Analyzes the impact on the
statement of retained earnings,
but does not base analysis on
the given scenario
(70%)
Does not evaluate other types
of retirement plans available
(0%)
4.8
Does not determine whether or
not to invest in the company
(0%)
1.6
Does not compose a memo to
the CEO
(0%)
1.6
Does not generate a projected
income statement
(0%)
1.6
Does not analyze the impact on
the income statement
(0%)
1.6
Does not generate a projected
statement of retained earnings
(0%)
1.6
Does not analyze the impact on
the statement of retained
earnings
(0%)
1.6
Report for CEO:
Projected Balance
Sheet
[ACC-620-06]
Report for CEO:
Impact on the
Balance Sheet
[ACC-620-06]
Report for CEO:
Projected Statement
of Cash Flows
[ACC-620-06]
Report for CEO:
Impact on the Cash
Flow Statement
[ACC-620-06]
Articulation of
Response
Meets “Proficient” criteria and
cites specific, relevant examples
from the projected statement
(100%)
Generates a projected balance
sheet based on the given
scenario
(100%)
Analyzes the impact on the
balance sheet based on the
given scenario
(90%)
Meets “Proficient” criteria and
cites specific, relevant examples
from the projected statement
(100%)
Generates a projected
statement of cash flows based
on the given scenario
(100%)
Analyzes the impact on the
statement of cash flows based
on the given scenario
(90%)
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format
(100%)
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
(90%)
Generates a projected balance
sheet, but does not use the
given scenario
(70%)
Analyzes the impact on the
balance sheet, but does not
base analysis on the given
scenario
(70%)
Generates a projected
statement of cash flows, but
does not use the given scenario
(70%)
Analyzes the impact on the
statement of cash flows, but
does not base analysis on the
given scenario
(70%)
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
(70%)
Does not generate a projected
balance sheet
(0%)
1.6
Does not analyze the impact on
the balance sheet
(0%)
1.6
Does not generate a projected
statement of cash flows
(0%)
1.6
Does not analyze the impact on
the statement of cash flows
(0%)
1.6
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
(0%)
2.4
Total
100%

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Westcliff University Melrose Backyard Presentation

Description

Unformatted Attachment Preview

You are the new project manager at Garden Decks of Beauty, a local company for the past 12
years in the Lexington, Kentucky area. Your first assignment will be for the Melrose (Todd and
Margo + two yippy dogs to drive the neighbors nuts) family who moved into their new home two
years ago and now wish to replace the 8 foot by 3 foot slab of concrete, the stoop, which their
backyard facing French Doors step onto with a new, luxurious deck area with hot-tub and
accoutrements. Their backyard is 80’ wide and 120’ deep and runs at a 5% slope down straight
to the back. BTW, Todd and Margo are Iron Triangle lovers – Time / Cost / Quality. Win them
and you win their neighbors’ business.
Here are some of their basic requirements:
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A two area deck with the upper level (will step on from the French Doors), being a 5
meter by 7 meter rectangular area
One end of the upper level will have a 5 meter by 3 meter by 3.5 meter tall pergola – you
may use a kit or build and design from scratch
You will have a single step down to the second circular area which will be 7 meters in
diameter and have a 2.5 meter square hot-tub on the far side – this will need electrical and
you will acquire and facilitate the installation through the vendor
You will be able to step from the circular area to the yard on a paving stone path which
will run out to the garden – the path will be 7 meters long and 1 meter wide – this path
will have electrical yard lights
There will be a 25’ diameter area half way down the path which will have a built in fire
pit with seating (4 seats / benches) – the area will use gravel and border stones
All deck areas will be edged with decorative railing
The deck framing will set on 4”x4” footers which will be concreted 1 meter into the
ground (below frost line) – you will used galvanized hangers to support frame supports
The lower area will have built in flower boxes 2’x 3’ – three of them
The upper area will have a gas grill with built in gas service
You will need a building permit and it will cost 50 dollars
All railing will have decorative lighting running along it
Both main deck areas will be fully landscaped around the perimeter with plants,
decorative stones, perennials, and bushes. – your team will do the landscaping
You will have an experienced construction crew of 4 FTE’s which will cost $80/hour
including benefits and 1.5 time overtime applies
You will have a team of 2 experienced landscape professionals who will cost $75/ hour
and overtime applies.
Need a couple outdoor, 110 electrical outlets for Xmas lights, etc.
You will need electrical you will vendor out – determine cost
You will vendor out the hot-tub installation – determine cost
You will need a vendor to install and run the gas-line – determine cost
The deck will be fully sealed with a medium brown stain / preservative
You will use treated lumber for all framing and you will decide on what product to use
for surface boards (wood, synthetic, etc.)
The upper level will have two built in seats near the grill area (wood) – not under the
pergola
You will need to determine the timeline – will precipitate from the Work Breakdown
Structure
•
•
•
Assume you have all the tools you need
Any requirements not specifically stated are at your discretion.
A 5 foot by 12 foot 2×8 raised bed tomato and pepper area just to the left of where you
might walk off the center of the upper deck with drip irrigation installed and drip
irrigation faucet at one corner of the raised bed.
Please see the documents to be created for the project below. As a team, it is extremely important
to all of you that you participate in the creation of every document listed below in some
way. That you leave this course with the knowledge of what that document is for and what it
typically contains. You will need to create all of the documents as a team and you will use those
documents to create slides for your project status presentation Sunday morning using a Power
Point.
1.
2.
3.
4.
5.
Project Charter (Friday)
RACI (Friday) (can use EXCEL)
Statement of Work (SOW) (Friday)
Scope Document( Friday)
Very Basic Drawing (https://financesonline.com/best-free-landscape-designsoftware/) (Saturday)
6. Procurement Process (materials and vendors) (Saturday)
7. Assumptions and Constraints Document (Saturday)
8. Risk and Issues log / matrix (Saturday) (can use EXCEL)
9. Communication Plan (Saturday) (can use EXCEL)
10. Work Breakdown Structure (WBS) (can use EXCEL) (Saturday)
11. Quality Document (Saturday)
12. Change Request Process Document (Saturday)
13. Milestone Time-line Breakdown (Saturday)
14. Budget (Will precipitate from the Work Breakdown Structure) (Saturday)
15. Project status report – done on a deck slide to go to leadership weekly by COB Fridays –
must include color coded status, budget section, risk section, issue section, current past
achievements, work areas underway (Sunday)
How do I approach this?
Internet research is your friend – good Google topics = deck construction basics – hottubs for sale and installation – how to pick a gas grill – running a gas-line to my grill – landscape
planning – all kinds of project related searches – estimating construction labor costs – any places
like Lowes for all of your basic materials cost – building an in-yard fire-pit, procurement and
contract basics – building a deck flower box – Wayfair for pergolas, building a pergola,
YouTube, your textbook, etc.
I know:
-That many of you are thinking that I have no experience with construction, building decks,
landscaping, etc. What you must realize is that when you seek employment as a project manager
you will always have this conundrum of how much do I really need to know about the area of
work the project lies within (telecom, IT, construction, travel, human resources, insurance, health
care, finance, etc.) do be effective at my job. You will have potential employers who will think
you need to know a great deal. You will meet folks like me who would advise that is not the
case. What you must be ready to do is learn / absorb as much knowledge in the area of project
work as soon as possible. Be ready to explore all of your options to gain and find the knowledge
you need to function effectively. You need to have just enough vocabulary and knowledge to
operate and communicate well and that will then continually grow as the project moves
forward. This is part of what makes being a project manager such fun – it is never the same –
never b
1
Statement of Work
Student’s Name
Course Department, Institution
Course Code, Course Name
Date
2
Statement of Work
The project entails replacing an 8foot by 3-foot Backyard with new luxurious French
door backyards measuring 80 inches wide and 120 inches deep and running a 5% slope down
straight to the back. The upper end of the Backyard is expected to measure 5m by 3m by 3.5m,
with a single step having a circular area requiring electrical for installation. An electrical vendor
will be hired for the structure of the electrical appliances at an approximate cost of $250. The
path within the circular area of the yard will measure 7m by 1m and will have a yard light for
security and lighting purposes.
Gravel and border stones will be used for constructing a 25 inches diameter area halfway
down the path installed with a fire pit having four benches. The decorative lining will be used for
decorating the deck areas making the place attractive as the framing of the decks will measure
4inches by 4 inches under concrete with 1 meter into the ground for firmness. Hangers will
support the frames of the deck. Treated lumber will be applied for the framing process, and the
surface boards will be made of synthetic products. To meet the luxurious standards of the clients,
the three lower ends of the Backyard will be built in the flower boxes measuring 2 inches by 3
inches as the upper end will have a gas grill constructed with the gas service at the cost of $600.
The deck will be sealed with a medium brown stain.
Thus, the new Backyard is approximated to cost $500000 will be constructed from
already existing design and information, improving the initial backyard meeting the modern
needs of the clients. The project is expected to take three months, with the final product being of
high quality. The number of employees is projected to be 25, and they will be paid %50-80 per
hour based on their skills and area of expertise. For example, a Landscape professional will be
paid $75 per hour helping successfully complete the project. The total budget of the project is
within the limit of the clients. Thus the project is affordable.
PROJECT CHARTER
1. General Project Information
Project Name:
Melrose Backyard
Executive Sponsors:
Hutton Group M50
Department Sponsor:
Cumberlands
Impact of project:
Redesign the backyards of Melrose family and expand the business through reference.
2. Project Team
Name
Department
Telephone
E-mail
Project Manager:
Hutton Group
Melrose – Garden Decks of
Beauty
xx-xx-xxxx
gardendecks@beauty.com
Team Members:
Atiq Nurani
Bharath
Shaurin
Sreekanth
3. Stakeholders (e.g., those with a significant interest in or who will be significantly affected by this project)
The stakeholders in this redesign project would be Melrose family, Garden Decks Project Manager, Vendors associate with
Project and Hutton group.
4. Project Scope Statement
Project Purpose / Business Justification
The purpose of project is to provide Melrose family with cost effective plan, design and good quality work. This would be beneficial for
the Garden Decks to increase their business.
Objectives (in business terms)
The main objective in this project is to maintain the cost under $35,000 and get good quality materials/Equipements and have it in
timely manner.
Deliverables
Two-area deck with levels leading to hot tub and a circular area with paved stone paths with railings.
Landscaping with plants, flower boxes.
Appliances includes hot tub, grill, drip irrigation system.
Decorative lightings, all electrical components and lumber frames.
Project Milestones
Make the timeline and communicate with the client once all the agency and vendor have been contacted with the cost and delivery
with complete installation. Provide weekly update and run any issue with Project Manager and client.
Major Known Risks (including significant Assumptions)
Risk
Risk Rating (Hi, Med, Lo)
Timeline
High
Foundation for making two level deck
Medium
Vendor, Equipment Installation
Medium
Construction Permit
Low
Cost
Low
External Dependencies
The success of the project depends on the cost and efficiency of the external agency to finish the work installing the equipment and
extending the lines as required. The focus would be to maintain clear communication between all the agency and run parallel to finish
the project in timely manner.
5. Communication Strategy (specify how the project manager will communicate to the Executive Sponsor, Project Team members and
Stakeholders, e.g., frequency of status reports, frequency of Project Team meetings, etc.
Daily communication with all the agencies including vendors. Provide weekly update to Project Manager and client.
6. Sign-off
Name
Signature
Date (MM/DD/YYYY)
Executive Sponsor
Hutton Group
06/11/2021
Department Sponsor
Cumberlands
06/11/2021
Project Manager
Bharath
06/11/2021
7. Notes
RACI chart- R(Responsible) A(Accountable) C(Consulted) I(Informed)
RACI
WBS
Project deliverables (or Activity)
0.0
Remodeling Melrose family hose back yard
1.0
Upper level
1.1
Pergola (5 X 3 X 3.5) cubic Meters
Sreekanth
Bharath
Atiq
Shaurin
A
I
C
R
7 meters second circular area with
1.2
2.5 square meters hot tub
R
I
A
R
1.3
Fire pit 25′ dia with 4 seats/benches
I
A
R
C
1.4
Deck framing and decorative railing
R
I
A
I
A 5 foot by 12-foot 2×8 raised bed tomato
1.5
and pepper area with drip irrigation faucet
C
A
I
R
1.6
landscaping
C
R
A
I
2.0
Lower level
2.1
3 Flower boxes 2′ X 3′
R
I
A
R
2.2
Deck framing and decorative railing
I
A
R
C
2.3
Landscaping
C
R
A
Statement of Work (SOW)
Introduction
As a new project manager at Garden Decks of Beauty, a local company for the past 12 years in the
Lexington, Kentucky area. first assignment will be for the Melrose family who moved into their new
home two years ago and now wish to replace the 8 feet by 3 ft slab of concrete, the stoop, which their
backyard facing French Doors step onto with a new, luxurious deck area with hot-tub and
accoutrements. – Time / Cost / Quality. Win them and you win their neighbors’ business.
Project purpose
As project manager at Garden Decks of Beauty, a local company for the past 12 years in the Lexington,
Kentucky area. first assignment will be for the replace the 8 feet by 3-foot slab of concrete, the stoop,
which their backyard facing French Doors step onto with a new, luxurious deck area with hot-tub and
accoutrements. The main purpose is improving process by improving Time / Cost / Quality
outline detailing required work, the processes used to complete the job.
•
A two-area deck with the upper level (will step on from the French Doors), being a 5
meter by 7-meter rectangular area
•
There will be a 25’ diameter area halfway down the path which will have a built-in fire.
pit with seating (4 seats / benches) – the area will use gravel and border stones.
I
•
All deck areas will be edged with decorative railing.
•
The deck framing will set on 4”x4” footers which will be concreted 1 meter into the
ground (below frost line) – you will used galvanized hangers to support frame supports.
•
The lower area will have built in flower boxes 2’x 3’ – three of them.
Deliverables required for project.
•
Schematic Design
•
Site plan: Schematic grading, utility, planting, and paving plans
•
Building elevations:
•
Landscape
•
Site planting plans
•
Preliminary irrigation plans
•
Typical planting details
•
Preliminary hardscape plans – if not done by the architect
•
Floor Plans
Misc. requirements
•
need a building permit and it will cost 50 dollars.
•
All railing will have decorative lighting running along it
•
Both main deck areas will be fully landscaped around the perimeter with plants,
decorative stones, perennials, and bushes. – your team will do the landscaping
•
Need a couple outdoor, 110 electrical outlets for Xmas lights, etc.
•
need electrical you will vendor out.
•
Need vendor out the hot-tub installation.
•
need a vendor to install and run the gas-line.
Cost
Thus, the new Backyard is approximated to cost $35,000 will be constructed from already
existing design and information, improving the initial backyard meeting the modern needs of the clients.
The project is expected to take three months, with the final product being of high quality. The number of
employees is projected to be 25, and they will be paid %50-80 per hour based on their skills and area of
expertise. For example, a Landscape professional will be paid $75 per hour helping successfully
complete the project. The total budget of the project is within the limit of the clients. Thus, the project is
affordable.
SCOPE DOCUMENT
As the project becomes huge and more unpredictable, with more capacities influenced by them, the
capacity of a manager to oversee the whole picture in detail is extremely critical for positive outcome.
As a manager, possibility of project success will increase in the event to develop wide ranges of
abilities. Building group commitments begins with having a good explanation and reason for being
together in any case. Effective communication is quite possibly the most successive reasons for a
project performance.
The project to be initiated is totally based on the customer decisions and the managers are required to
have a proper plan in achieving the best design. The key factors for a construction project are time, cost
and quality along with scope. As a manager, effective planning for the whole new project is very
essential and to evaluate the essential members to be involved based on their abilities. During
development, if the process of schedule begins to slip, close monitoring and refreshing of the schedule
will get it expeditiously and act to moderate it at every opportunity. This could mean rebalancing the
three imperatives of cost, scope, and time. Experienced manager with the best group, facilitates the
planning and designing, efficient preconstruction and most issues will be expected and relieved, leading
to a successful project delivery on time within a predefined budget.
PROJECT OBJECTIVE
To construct a high-quality slab, hot tub installation, fire pit and gas grill in the backyard with good
view at cost not to exceed $35,000.
DELIVERABLES

A two-area deck with levels leading to hot tub and a circular area with paved stone paths with
railings.

Landscaping with plants, flower boxes.

Appliances includes hot tub, grill, drip irrigation system.

Decorative lightings, all electrical components and lumber frames.
MILESTONES

Permit approvals

Foundation

Framing, plumbing, electrical and mechanical inspections and approvals

Final inspection
TECHNICAL REQUIREMNETS

Design must meet the local building codes.

Two area deck which leads to a circular paving area with stones that leads to a grill area and a
fire pit with seating.

Decorative lights along the railings for deck area

5 meters by 3 meters by 3.5-meter-tall pergola

Circular area of 7 meters in diameter and 2.5-meter square hot-tub

Paved stone path of 7 meter long

25’ diameter area with fire pit and seating for 4 people around it
CUSTOMER REVIEW
Todd and Margo
PROCUREMENT PROCESS and FLOW
Assumptions in project management means that whatever planning is happening, there is risk
associated with it. This is brain storming process in the planning and managing the project.
In this project we have few assumptions:
1.
2.
3.
4.
Getting all the materials and items from the vendor on time
All equipment is in good condition
Weather
Team members present on site
Constraints in project are the limitations and risk that needs to be addressed for successful project
completion. Time, cost and scope are some of the examples of constraints which are involved in any
project.
For our project in constructing two level deck, the constraints are:
1.
2.
3.
4.
5.
Budgets
Time
Client Approval on items
Vendor Response and
Resources like material availability
Risk Register Exercise
Risk Description
Managing change
1 orders
Impact
substantial
increasse in
cost and delay
in project
schedule
Category Probability
Ease of
detection Score(RPN)
Impact
budget and
schedule
5
9
9
405
Rework and
delay in project budget and
2 Incomplete drawingscompletion
and poorly defined
schedule
scope
4
7
9
252
budget and
schedule
5
10
8
400
Rework and
delay in project
4 Poorly written contracts
completion
ligal
5
7
8
280
5 Unexpected increasesincrease
in material
costscostsbudget
5
7
8
280
7
8
8
7 Damage or theft to equipment
Dealy project
and tools.
budget
8
9
10
8 Natural disasters
5
9
10
9
7
8
budget
8
9
8
human
resource
7
7
8
6
7
8
ligal and
quality
6
7
5
human
resource
6
10
6
3 Unknown site conditions.
increase costs
6 Labor shortages.
Dealy project
Dealy project
human
resource
budget
legal issues and
9 Issues with subcontractors
delay in
and
project
suppliers
ligal
10 Availability of building
Dealy
materials
project
Dealy project
and cost
11 Poor project management
overrun
Rework and
delay in project ligal and
12 Failure to comply with
completion
contractual quality
quality
requirements.
13
Scheduling
errors, contractor
delays.
Delay Project
increase
employee
14 Project team conflicts.
turnover
Mitigation
Strategy/
Resolution
Institutionalize
change order
process into the
fabric of
organization and
operations
Review and get
scope document
approved by stake
holders( Melrose
family )
Through site
inspection and soil
testing
Have the contract
reviewed and
approved before
beginning work
Anticipate market
and account for it
in the budget
planning
Hire contractors or
have a flexible
448 deadline
Have proper
security and insure
expensive
720 equipment
lookout for weather
forecast
and make
necessary
450 arrangements
Have backup plan
or multiple
504 contractors
Have detail list of
materials required
and make
arrangements for
those
that would be
576 scarce
Have an
experienced
392 project planner
have a proper
review system to
identify any
deviations from
336 contract
anticipate and
make
necessary backup
210 plans
Provide a helathy
work environment
and promptly
respond to any
360 complaints
Communication Plan:
#
Kickoff meeting
Daily status update
Action item follow up
Budget usage
Risks review and
update
Weekly status update
Project status meeting
purpose
-Introduce project.
– confirm objectives, goals
and deliverables
-Review whats everyone
going to do and
to make sure it aligns with
project goal
-Identify any issues that’s
delaying project
-prioritize tasks
-To ident and reduce cost
over runs
-To mitigate additional
expenses
-To identify and mitigate
risk
-Review what’s everyone
going to do and
to make sure it aligns with
project goal
-To provide project status
to stake holders
Medium
Frequency Audience
-In-person
meeting
(send video
conference
link for remote
workers)
-At the
beginning
of the
project
-Project team
-Project
sponser
(Melrose
family)
-In person
-Daily
-On site team
-Monthly
-project
manager
-Core team on
site
-contractors
-Monthly
– Project
manager
-Human
resource
-quality
control team
-In person
-video conference
-Monthly
– Project
manager
-Human
resource
-quality
control team
-In person
-Daily
-On site team
-Monthly
-Project
Manger
-Stake holders
(Melrose
family)
-Video conference
-In person
-video conference
-In person
-video conference
Work break down structure (WBS):
1.Renowating
Melrose family house
back yard
1.2
Lower
level
1.1
Upper
level
1.1.1
Pergola
(5 X 3
X 3.5)
cubic
Meters
1.1.2 7 meters
second
circular area
with
2.5 square
meters hot tub
1.1.2..1
Electric
al
(outsou
rce)
1.1.3 Deck
framing
and
decorative
railing
1.1.4
Building
permit/50$
1.1.4.1
Gas
grill
with
built in
gas
service
1.2.1 3
Flower
boxes
2′ X 3′
1.2.2 Deck
framing and
decorative
railing
1.2.3
Landsc
aping
MILESTONE TIMELINE BREAKDOWN
BUDGET (From Work breakdown structure)

Purchase answer to see full
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University of Maryland DMV Case Study

Description

Using the DMV case study provided, determine how an EA could be used to help the DMV accomplish the objectives stated explicitly and implicitly in the case study. The organization discussed in the case study has many issues with its current environment and many changes that it wants to make. It has not established an EA program yet.

The purpose of your paper is to briefly explain what an EA program is, and then justify a recommendation to establish an EA program for the organization. The DMV has taken on the CSI Redesign initiative so this presents an opportunity to explore how EA can be a benefit. You need to orient this assignment to justify recommendations on how the DMV can benefit from implementing a more holistic (EA) solution. You can use the CSI redesign effort as a basis on which to build, but your recommendations for EA should scale sufficiently.

You should provide at least four specific examples from the case study to show how an EA program could be of benefit, and you should provide at least two examples of how EA specifically benefitted another organization in solving problems similar to ones in the case study. (NOTE: More than four examples are required to receive all possible points; see Grading Rubric below.) Your paper will be graded on both the accuracy and the strength of your justifications; it needs to make a strong and compelling case for establishing an EA program for the DMV.

Your paper should be 2-3 pages in length (not counting any cover sheet or reference pages). The use of at least two external scholarly resources (other than class materials) is required. (NOTE: More than two external resources are required to receive all possible points; see Grading Rubric below.)

Unformatted Attachment Preview

Enterprise Architecture Justification Paper – Individual Assignment
Purpose of this Assignment
This assignment gives you the opportunity to apply your critical thinking skills and
understanding of the course concepts to explain how the enterprise architecture (EA) and/or
the EA program benefits an organization. This assignment specifically addresses the
following course outcomes:
•
•
•
describe enterprise architecture (EA), the appropriate application of EA frameworks,
and an overall ongoing EA program
analyze and examine how enterprise architecture and enterprise systems influence,
support, and enable an organization’s ability to contribute to strategic decision
making and to respond and adapt to the business environment
apply EA concepts to support business requirements and identify opportunities for
enterprise solutions
Assignment
Using the DMV case study provided, determine how an EA could be used to help the DMV
accomplish the objectives stated explicitly and implicitly in the case study. The organization
discussed in the case study has many issues with its current environment and many
changes that it wants to make. It has not established an EA program yet.
The purpose of your paper is to briefly explain what an EA program is, and then justify a
recommendation to establish an EA program for the organization. The DMV has taken on the
CSI Redesign initiative so this presents an opportunity to explore how EA can be a benefit.
You need to orient this assignment to justify recommendations on how the DMV can benefit
from implementing a more holistic (EA) solution. You can use the CSI redesign effort as a
basis on which to build, but your recommendations for EA should scale sufficiently.
You should provide at least four specific examples from the case study to show how an
EA program could be of benefit, and you should provide at least two examples of how
EA specifically benefitted another organization in solving problems similar to ones in the
case study. (NOTE: More than four examples are required to receive all possible points; see
Grading Rubric below.) Your paper will be graded on both the accuracy and the strength of
your justifications; it needs to make a strong and compelling case for establishing an EA
program for the DMV.
Your paper should be 2-3 pages in length (not counting any cover sheet or reference
pages). The use of at least two external scholarly resources (other than class materials)
is required. (NOTE: More than two external resources are required to receive all possible
points; see Grading Rubric below.) You should use scholarly journals (rather than
Wikipedia and authorless website postings). If you need assistance with determining what a
scholarly journal is, the UMUC library is a very good source of information, accessed via the
following link: http://www.umuc.edu/library/libhow/articles.cfm. Remember to correctly cite
and reference all sources using APA format.
Submit your paper in Word format via your Assignments Folder as an attached document
with your last name included in the filename.
03/15/2019
1
Grading Rubric
Use the rubric below to be sure you have covered all aspects of this assignment.
Criteria
Introduction
Explanation
of Enterprise
Architecture
Program
Justification
for EA
Program
03/15/2019
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
Possible
Points
5 Points
4 Points
3.5 Points
3 Points
0-2 Points
5
A sophisticated
introduction sets
the stage for the
paper.
A well-written
introduction
sets the stage
for the paper.
The
introduction
adequately
sets the stage
for the paper.
The
introduction
does not
adequately
set the stage
for the paper.
No
introduction
included.
13-15 Points
12 Points
10-11 Points
9 Points
0-8 Points
Explanation is
brief but clear; is
complete enough
to set the stage
for the paper;
and
demonstrates a
sophisticated
understanding of
course concepts.
Explanation is
brief but clear;
is complete
enough to set
the stage for
the paper; and
demonstrates
a good
understanding
of course
concepts.
Explanation is
adequately
clear and
sufficiently
complete to
set the stage
for the paper,
and
demonstrates
an adequate
understanding
of course
concepts.
Explanation
may be only
somewhat
clear or
complete;
may or may
not
demonstrate
an adequate
understanding
of course
concepts.
Explanation is
not included
or little effort
is
demonstrated.
23-25 Points
20-22 Points
18-19 Points
0-14 Points
The justification
is clear,
compelling and
directly related
to the case
study. It
demonstrates a
sophisticated
understanding of
course concepts,
analysis, critical
thinking, and
synthesis.
The
justification is
clear, and
directly related
to the case
study. It
demonstrates
a good
understanding
of course
concepts,
analysis,
critical
thinking, and
synthesis.
Justification is
clear and
related to the
case study; it
demonstrates
adequate
understanding
of course
concepts,
analysis,
critical
thinking,
and/or
synthesis.
15-17
Points
Justification
may be
somewhat
clear, or may
be somewhat
related to the
case study; it
may not
demonstrate
adequate
understanding
of course
concepts,
analysis,
critical
thinking,
15
25
Justification is
missing or
demonstrates
little effort.
2
Criteria
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
Possible
Points
0-11 Points
20
and/or
synthesis.
Benefits
18-20 Points
16-17 Points
14-15 Points
More than four
benefits of an EA
program are
identified and
clearly related
directly to the
case study,
demonstrating
sophisticated
critical thinking
and writing.
More than four
benefits of an
EA program
are identified
and related to
the case study,
demonstrating
critical thinking
and writing.
At least four
benefits of an
EA program
are identified;
and are at
least
somewhat
related to the
case study;
and
demonstrate
adequate
critical
thinking.
12-13
Points
Four or fewer
benefits of an
EA program
may be
identified;
and/or may
be only
somewhat
related to the
case study;
and/or may
not
demonstrate
adequate
critical
thinking.
9-10 Points
8 Points
7 Points
6 Points
0-5 Points
More than two
examples of
benefits of EA
from other
organizations
are identified
and are related
to the case
study;
demonstrates
analysis and
critical
thinking.
At least two
examples of
benefits of EA
from other
organizations
are presented
and are
related to the
case study;
demonstrates
adequate
analysis and
critical
thinking.
Two or fewer
examples of
benefits of EA
from other
organizations
may be
presented
and/or may
be only
somewhat
related to the
case study;
and/or may
not
demonstrate
adequate
analysis and
critical
thinking.
No examples
from other
organizations
are
presented, or
little effort
demonstrated.
4 Points
3.5 Points
3 Points
0-2 Points
Conclusion is
somewhat
No conclusion
provided, or
More than two
examples of
benefits of EA
from other
organizations are
identified and
are clearly
Examples
related to the
from Other
case study;
Organizations demonstrates
sophisticated
analysis and
critical thinking.
5 Points
Conclusion
03/15/2019
Conclusion is
convincing,
No benefits
identified or
little effort
demonstrated.
10
5
3
Criteria
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
Conclusion is
effective and
relevant.
Demonstrates
analysis and
critical
thinking.
Conclusion is
provided and
is relevant.
effective
and/or
relevant.
minimal effort
demonstrated.
9-10 Points
8 Points
7 Points
6 Points
0-5 Points
More than two
scholarly sources
other than the
class resources
are incorporated
and used
effectively,
contextualized,
appropriately
researched and
supported, and
synthesized with
original
arguments.
Sources used are
credible,
relevant, and
timely. Correct
APA style is used
for citations and
references.
More than two
scholarly
sources other
than the class
resources are
incorporated
and used
effectively,
appropriately
researched and
supported, and
support
original
arguments.
Sources used
are credible,
relevant, and
timely. Correct
APA style is
used for
citations and
references.
Two scholarly
sources other
than the class
resources are
properly
incorporated
and used.
Uses APA
format for
references and
citations.
Two or fewer
sources other
than the class
resources
may be used;
may not be
scholarly
sources; may
not be
properly
incorporated
or used to
support
arguments;
may rely too
heavily on the
reporting of
external
sources,
and/or are
not effective
or
appropriate;
and/or are
not credible,
relevant, or
timely. May
not use APA
format.
No external
research is
incorporated
or reference
listed is not
cited within
text.
9-10 Points
8 Points
7 Points
6 Points
0-5 Points
Paper reflects
Paper reflects
effective
organization;
follows
instructions
Paper has
some
organization;
may have
some errors in
Paper is not
well
organized,
and/or
contains
Paper is
extremely
poorly
written, has
many
effective and
relevant.
Demonstrates
sophisticated
analysis and
critical thinking.
External
Research
Format
03/15/2019
effective
organization and
sophisticated
writing; follows
Possible
Points
10
10
4
Criteria
90-100%
Far Above
Standards
80-89%
Above
Standards
70-79%
Meets
Standards
60-69%
Below
Standards
< 60%
Well Below
Standards
instructions
provided; is
written in third
person; uses
correct structure,
grammar, and
spelling; doublespaced and
presented in a
professional
format using
Word.
provided; is
written in third
person; has
few errors in
sentence
structure,
grammar, and
spelling;
doublespaced, and
presented in a
professional
format.
sentence
structure,
grammar and
spelling. Is
double spaced
and written in
third person.
several
grammar
and/or
spelling
errors;
and/or is not
doublespaced and
written in
third person.
grammar
and/or
spelling
errors, or
does not
convey the
information.
TOTAL
Points
Possible
03/15/2019
Possible
Points
100
5
DMV Case Study
Purpose of this Assignment
(The information below is excerpted from the Virginia Department of Motor Vehicles’ RFP
154:7-061, DMV CSI Systems Redesign Project, available from under Content>Course
Resources>DMV_CSI_RFP_083107_Final_Release. Corresponding page numbers from the
RFP are given in parentheses at the end of each lettered section heading.)
A. DMV Organizational Overview (p. 2)
The Department of Motor Vehicles (DMV) is a governmental agency in the Executive Branch of
Virginia state government. Under the direction of the Secretary of Transportation, DMV
administers motor vehicle and tax related laws for the continued benefit of all citizens of the
Commonwealth of Virginia. Specifically, DMV administers motor vehicle titling and licensing
laws, driver’s licensing laws, transportation safety laws, tax laws, and other motor vehiclerelated laws and regulations as directed by the Code of Virginia and Federal laws, as amended.
DMV employs nearly 2000 full and part-time employees to meet its daily mission of providing
transportation services to customers in Virginia. These employees provide services via one
centralized administrative Headquarters located in Richmond, Virginia as well as 74 Customer
Service Centers (CSC’s) and 13 Motor Carrier Service Centers/Weigh Stations (MCSC’s)
dispersed throughout the state. In addition, some services are provided at more than 40 DMV
Select offices located throughout the state. DMV Selects are a service alternative to visiting a
full-service DMV Customer Service Center. Local governments and private entities contract with
DMV to provide secure, select DMV transactions at convenient locations.
DMV provides a multitude of services to private citizens, transportation entities, courts, law
enforcement agencies, government agencies, insurance companies, and related transportation
clients. The most commonly provided DMV services include:
?
?
?
Credentialing – This includes the provision of driver testing and licensing, vehicle
titling and registration, credentialing of commercial motor carriers, and regulatory
licensing functions such as fuel distributors, rental car companies, dealers,
commercial driver training schools, driver improvement clinics, and 3rd party
testers.
Tax processing – This includes support for the calculation, collection, accounting,
and reporting statistics for all tax filings (including IFTA, tax on fuel, and tax on
motor vehicle rentals) as well as support for an external/taxpayer audit function.
Oversight of related programs such as transportation safety and information
management
Due to the nature of DMV business processes, the type of work performed by the agency
requires substantial use of automated systems. It is imperative that the agency operate its
programs and facilities in an efficient manner, incorporating into its operation those
July 2014
1
technological developments and automated solutions that will enhance the delivery of services to
DMV’s various transportation clients.
B. The Opportunity (p. 1, pp. 2-3)
DMV has decided to undertake a systems redesign they are calling CSI:
?
?
?
?
?
?
Customer-centric
Service Oriented
State-of-the-art
Secure
Intelligent
…..CSI
The DMV CSI Systems Redesign project focuses on the fragmented processing of DMV’s core
business areas of credentialing, tax processing, and financial management. The purpose of the
CSI effort is to transform these fragmented and outdated systems into one modernized system
that is responsive to the ever-changing needs relating to internal security, homeland security,
legislative mandates, and customer relationship management.
As we move forward with this endeavor, DMV has a unique opportunity to revolutionize the
agency’s approach to fulfilling its mission, carrying out core functions, and delivering service.
DMV intends to fully integrate processing while incorporating and leveraging the full
functionality and benefits of proposed technology solutions as well as the technology already in
place.
The scope of the DMV CSI Systems Redesign project is based on utilizing a fully integrated
system to serve and manage our customers, our contractual business partners, and our
stakeholders. The scope includes, but is not limited to credentialing, tax processing, and financial
management.
The CSI Redesign consists of the following components:
?
?
?
?
?
July 2014
User interfaces for Headquarters, Weigh Station, and Customer Service Center
staff, DMV Selects, Internet, Touchtone, cyber sites, and selected business
partners (online dealers, Commissioners of the Revenue, insurance companies,
motor carrier companies, etc.)
Core business services
Infrastructure services to manage access rights, perform audit and system logging
functions, a business rules engine, a message broker to facilitate communication
between components and with external system interfaces, transaction suspense
capability, and a correspondence module.
Data stores, business intelligence to provide regular and ad hoc management
reports, audit reports and fraud alerts, and other applications, and
Interfaces to other systems, such as DMV’s Purchasing, Inventory, and Payables
System (PIPS), Department of Accounts (DOA), Treasury, Unified Carrier
2
Register (UCR) repository, Centralized Accident Processing System (CAP),
Traffic Records Electronic Data System (TREDS) which will replace CAP,
Hauling Permits, Virginia Criminal Information Network (VCIN), DMV’s
Human Resource system, etc.
C. The Current Environment (pp. 6-7)
1. Overview of Existing Customer Service Center (CSC) Environment
Each CSC has the capability to house its own hardware and software supporting the
citizens of the Commonwealth utilizing server virtualization and operating system
streaming to reduce the support costs associated with distributed systems.
The main technologies utilized are based on Ardence Desktop Edition
(www.ardence.com) to stream the Windows operating system to the desktops. VMWare
ESX server is utilized to host virtual Windows 2003 based servers.
DMV CSCs are connected to the DMV HQ via T1 speed circuits. The HQ WAN
connections are enhanced by the use of F5 WANjet appliances. DMV CSC’s also have
frame relay circuits connecting them to the Virginia Information Technologies Agency
(VITA) data center for SNA Mainframe traffic only.
All servers in each branch must support being virtual servers. This allows DMV to
centrally manage and deploy servers without having to procure or replace server
hardware as systems are introduced, upgraded, or replaced. Servers can be deployed from
the central DMV support system utilizing the existing DMV Virtual Server Farm. DMV
has a pair of HP Proliant DL360s fiber connected to an HP MSA1000 SAN for Virtual
Machines. All connections to the SAN are through the DL360s and Virtual Servers. The
current storage capacity of the MSA1000 is approx 1TB of storage. Disk space can be
provided via Windows 2003 Virtual Servers.
All workstations have the operating system streamed (OSS) via Ardence Desktop
Edition. This allows DMV to centrally manage and update one system image for all
machines at the DMV CSCs. The internal hard disk on each workstation has been
deactivated as the operating system is streamed but can be enabled if necessary. Also,
Ardence Desktop Edition provides a full Windows XP Pro Operating system, not an XP
embedded or thin client OS. This allows any device with the proper drivers installed in
the master image to work on the DMV OSS Workstations. DMV has deployed HP
dc7600 slim line PC’s for the OSS Workstations.
User authentication, authorization, file and print, and group policies are provided locally
at each CSC via Virtual Windows 2003 Servers.
Each CSC presently has its own software to support the citizens of the Commonwealth
for driver licensing and vehicle registration utilizing CSCNet (Customer Service Center
Network) written in the Software AG language Natural, in a Unix environment.
July 2014
3
2. Overview of Existing DMV HQ Computing Environment
At its Headquarters location, DMV operates a Novell v6.5 LAN.
Customer Service Center PC’s connect to the HQ LAN via the WAN. DMV PC’s operate
in either a Windows 2000 or XP Pro SP2 environment.
Novell GroupWise v7.x is used for e-mail. Netware for SAA is used for 3270 emulation
with the use of Powerterm to access CSS.
3. Overview of Existing Citizen Services System (CSS)
The CSS System is a mainframe application system running in the OS/390 environment
at VITA. DMV’s application programs are built using the Software AG products
ADABAS, Natural, and COMPLETE. CSS is DMV’s primary information system that is
used for storing information on customers, their addresses, their driver history, vehicle
registration and titling information, etc.
This system is accessed from the CSCs via a private Frame-Relay network, and from the
DMV Headquarters location via a private DS3 serial connection. CSS is also accessible
via the EAI layer described below via XML web services.
4. Overview of Current DMV Enterprise Application Infrastructure (EAI)
DMV’s current EAI is a service-based architecture utilizing a variety of techniques. The
preferred mechanism to interact to DMV’s EAI is via web services. DMV provides highavailability services to the mainframe, databases, and a variety of other DMV systems.
Presently DMV utilizes Windows based servers as Presentation, Business Logic, and
Data Access servers. DMV Servers are secured based on current industry standards
provided by the NSA, SANS Institute, etc, as well as those published by VITA. Servers
are designed with standardization across all machines. DMV utilizes both physical and
virtual servers (VMWare ESX Server) based on need and activity.
Document and image management, storage, retrieval, and workflow services are provided
by Hyland Systems OnBase application.
DMV’s present enterprise database platform consists of a high-availability Oracle 10g
RAC 2 node cluster and a SQL Server 2005 failover cluster both utilizing fibre channel
storage.
The DMV Enterprise Application Infrastructure (DMV-EAI) is designed with security
and standardization as the core set of principles required to provide maximum uptime to
applications and customers.
July 2014
4
DMV’s present development environment for enterprise applications is based on the
Microsoft .NET development platform (VB.NET and C#).
5. Overview of Other Outlets
DMV has several outlets that utilize a combination of technologies defined above. These
outlets and systems provide core services to internal and external customers of DMV.
They are highlighted below and are not all-inclusive of all outlets, yet provide the
necessary sampling of technology implementation for reference purposes:
DMV Select: DMV Select allows selected business partners to provide core DMV
services to the citizens of the Commonwealth. They utilize a smart client application to
perform vehicle related transaction processing. Select offices utilize the public Internet
over a secure channel to access the core services available on CSS. The access is
provided by the EAI listed above to interact with CSS.
MCSC (Motor Carrier Service Center): The MCSC offices utilize a variety of
applications to perform their daily activities. They have access to CSCNet as well as
several intranet applications that interact with CSS via the EAI listed above. They utilize
a combination of smart client, intranet web applications and Powerterm to access CSS via
a 3270 client.
3rd Party Systems: DMV has several 3rd Party hosted systems that support various
business functions. Examples include ACS, Digimarc, etc. These systems utilize various
technology sets and platforms that interact with the core platforms identified above.
D. CSI Redesign Objectives (pp. 8-9)
1. Providing improved access to information through single sign-on and limiting access to
data, fields and values, screens, system processes to only authorized users, improving
user authentication, segmenting and tracking access based on user roles and
responsibilities (role-based security model capabilities), and creating a new ability for
users to generate ad hoc reports.
2. Enhancing security, customer ID verification, and fraud prevention by eliminating
duplicate customer records and creating a true single customer record, tracking patterns
of suspicious activity (customer and employee), producing automated exception reports
and creating systems alerts to potential safety, security, and risk management issues, and
restricting access based on user roles and responsibilities and accommodating multiple
authentications based on segregation of duties.
3. Automating audit requirements and oversight by tracking user activity in a standard
manner and creating a single data store.
4. Consolidating disparate applications by replacing multiple systems with a single
integrated data store, integrating multiple applications through core modules (such as user
interfaces, core business services, infrastructure related services, interfaces, etc.), and
providing a financial services component, as well as a tax processing component, with
enhanced tracking and netting capabilities.
July 2014
5
5. Improving efficiencies by incorporating best practices and re-engineering all processes
within the project scope (at a detailed level as part of developing a detailed system design
during the detailed design forum).
6. Implementing a customer-centric model that effectively supports customer relationship
management.
7. Increasing alternative service channel usage by allowing most transactions to be offered
through multiple channels.
8. Migrating toward electronic credentials to provide the type of controlled access needed
for authorized entities to verify the existence of electronic credentials, including
photographic or other images as may be required.
9. Accommodating interoperability and integration with business partners by providing a
consistent method to interface with business partners and a consistent message format for
exchanging data as well as creating the ability to effectively manage business partner
contracts and billing electronically.
10. Providing an integrated financial component, including integration of the agency’s ERP
(Oracle Financials), to facilitate a complete financial view of the customer (refunds due,
additional fees due, etc.) as well as an enhanced ability to allocate revenues to appropriate
accounts.
E. Future State Business Process Model (pp. 14-18)
July 2014
6
Each of the seven process areas identified in the CSI Future State Business Process Model are
described below, including the business functions supported by each as well as the
products/services provided. Please note that these processes and business functions are not listed
in priority order.
1. Service Delivery
Service delivery supports all DMV access channels to provide a 360-degree view
of a DMV customer by collecting all relevant data. All customer (including
business partners, stakeholders, etc.) and employee contact and activity must enter
and exit through this process. Service Delivery will coordinate all support
functions of the contact activity including the ability to support a shopping cart
concept for multiple transactions, payment processing and netting, inventory
processing, and release of the final product.
July 2014
7
2. Credentialing
The credentialing process rolls the credentialing functions of driver, vehicle,
motor carrier, and regulatory licensing functions such as fuel distributors, rental
car companies, dealers, commercial driver training schools, driver improvement
clinics, and 3rd party testers into one, all inclusive process. A credential can be
issued, updated, or renewed, a privilege reinstated or taken away, and compliance
to requirements is monitored. A credential would also include the creation of
PINs, Use Agreements, and any other DMV product or service requiring formal
authorization or approval.
3. Tax Processing
Tax Processing manages the processing of tax returns and posting the tax payment
as well as taxpayer audit support functions.
4. Financial Management Services
Financial Management Services handles reconciliation and distribution of revenue
of all payments from DMV transactions as well as grant and contract
administration.
5. Inventory Management
Inventory Management tracks the consignment of controlled inventory and assets.
6. Business Intelligence
Business Intelligence will provide the ability for retrieving and reporting
information on DMV data. There will be the ability to compile data in such a
manner that will be meaningful to the end user (including decision makers at
DMV, external entities, etc.). This will include key performance indicators such
as customer wait time and cost per transaction. Once the data is presented, there
will be a decision support tool to assist DMV managers so that various
alternatives can be compared. BI will also support automated and ad hoc reports
(e.g., enabled by Use Agreements) and assist in identifying fraud through periodic
audits.
7. Administer Infrastructure
Administer Infrastructure will give DMV the necessary flexibility for business
users to be able to change their workflow and bu

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What’s Driving Porsche?, Case Study and Strategic Plan help

Description

Read What’s Driving Porsche? and History of Porsche AG – FundingUniverse.
From the perspective of an executive with the firm, prepare a
strategic plan to grow the business over the next three years.

Your strategic plan must be future-oriented and must:

  • Describe Porsche’s history and its 4Ps (Product, Price, Place, and Promotion).
  • Explain the current situation of the organization in the market (industry, market, and general environment analysis).
  • Assess the financial performance and condition of the organization.
  • Conduct a SWOT analysis (strengths, weaknesses,
    opportunities, and threats) to determine areas that offer opportunities
    for change.
  • Choose three or four areas from your SWOT analysis and
    explain why the areas you have chosen are essential to your strategic
    plan.
  • Describe your recommended organizational structure.
  • Explain your plan to measure the success of your strategic plan.

Your paper must be 10 to 12 pages in length (excluding the
title and reference pages) and be formatted according to 6th Edition APA style
guidelines. In addition to the
text, you must use at least five scholarly sources. Remember to
incorporate information that you have learned from this course as well
as your personal experience. 

Textbook Information: 

Abraham, S. (2012). Strategic management for organizations. San Diego, CA: Bridgepoint Education.            

Unformatted Attachment Preview

09-075
August 25, 2009
What’s Driving Porsche?
Rebecca Henderson, Cate Reavis
There are some customers who love the idea that an engineer working on their project in the
afternoon was the same guy working on a 911 motor in the morning.
—Managing Director, Porsche Engineering Group 1
We were working with Volkswagen on the next generation of the Cayenne (which shared its structure
with the VW Touareg and Audi Q7) and I wanted a clear connection to safeguard Porsche’s interests.
We could not do this alone.
—Porsche CEO Wendelin Wiedeking, on decision to acquire VW 2
In early March 2008, Porsche’s supervisory board, which included the chairman of the Volkswagen
Group, Ferdinand Piëch, agreed to raise its holding in Volkswagen from 31% to 50% giving it a
majority stake.
Porsche’s takeover of VW was seen by many as a wise move for the small, independent car company
that, unlike rival brands Jaquar, Ferrari, Lamborghini, and Lotus, had managed to avoid being
gobbled up by the auto industry’s behomoths the likes of General Motors, Chrylser and Ford. There
was, however, a key strategic question about Porsche’s acquisition of VW that was not receiving a lot
of press: Would the long-term stability of Porsche’s engineering and design prowess be at risk by
bringing VW “in-house”?
1
Scott Miller, “Road More Traveled,” The Wall Street Journal, August 21, 2002.
2
Ray Hutton, “Porsche Set to Take the Wheel at VW,” The Sunday Times, October 14, 2007.
This case was prepared from published sources by Cate Reavis under the supervision of Professor Rebecca M. Henderson.
Professor Henderson is the Eastman Kodak Leaders for Manufacturing Professor of Management. This case is based on
research conducted by Julien Heider, Jody Muehlegger and Konrad Haunit (MIT Sloan MBAs, Class of 2008).
Copyright © 2009, Rebecca M. Henderson. This work is licensed under the Creative Commons Attribution-Noncommercial-No
Derivative Works 3.0 Unported License. To view a copy of this license visit http://creativecommons.org/licenses/by-nc-nd/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
Engineering and design were considered the hallmarks of Porsche’s competitive advantage, and rather
than keeping its R&D under tight wraps, Porsche shared its R&D team of 2,300 engineers with
outside companies, and had built a lucrative engineering services business based on this model.
Through its 100% wholly-owned customer engineering development company, the Porche
Engineering Group (PEG), Porsche made its wide-ranging expertise in the development and
production of vehicles available to clients from a variety of industries. PEG was considered Porsche’s
“secret weapon, enabling it to employ more engineers than if it worked alone, giving it an edge in
product development.” 3 Porsche’s small size and market niche made it easier for other auto
manufacturers to trust that Porsche would not use the technology knowledge attained through its
engineering services division to compete head-to-head.
Bringing the R&D functions of the two firms too close together could potentially weaken Porsche
engineers’ sense of belonging and demotivate them. While Porsche was a company that thrived on
healthy profit margins, VW’s business model was all about volume. Furthermore, if Porsche
engineering was too closely associated with the entire VW portfolio, the company could lose its
ability to sell external engineering to other OEMs concerned that Porsche would be sharing strategies
and innovations with VW. The question facing Porsche’s senior leadership was how to ensure that the
integration of VW did not negatively effect Porsche’s outside engineering business.
Porsche
Porsche was founded in 1931 by Ferdinand Porsche, along with his son and son-in-law, Anton Piëch,
father of VW Chairman Ferdinand Piëch. Known in its early days as the Porsche Engineering Office,
Porsche did not start off as an automaker, but rather a firm that sold design and engineering services
to other carmakers. In 1934, Adolf Hitler commissioned Porsche to make a “people’s car” or
“volkswagen.” The forerunner to the VW Beetle, the VW Type 60 hit the roads in the mid-1930s, and
in 1938 the first plant dedicated to the manufacturing of the VW was opened. It wasn’t until 1948,
three years after the end of World War II, that Porsche produced its first branded sports car. Within
two years, the Porsche 356 series rolled off the production lines. 4
By 2007, Porsche was the world’s most profitable automaker on a per unit basis, 5 a feat that was
especially impressive considering it produced just over 100,000 automobiles annually. The
company’s recorded average revenue per car of €62,568 ($91,974) dwarfed that of Mercedes’s
€40,445 ($59,454), BMW’s €34,766 ($51,106) and was nearly 2.5 times Audi’s €27,500 ($40,425). 6
In an industry where scale was usually considered a prerequisite for reducing production costs, the
company’s operating margins of nearly 20%, double those of Toyota, 7 made Porsche an exception to
the rule. In 2007, Porsche’s income topped $9.4 billion on revenue of $10 billion. (See Exhibit 1 for
3
Bret Orekson, “Engineering Is Porsche’s Secret Weapon,” Automotive News, January 15, 2001.
4
Adler, Dennis, Porsche: The Road from Zuffenhausen, 2003, p. 76.
5
Jeremy Cato, “Porsche Revs Up for Explosive Growth,” The Globe and Mail, February 22, 2007.
6
€1 = US$1.47 (December 31, 2007)
7
Gail Edmondson, “Pedal to the Metal,” BusinessWeek, September 3, 2007.
AUGUST 25, 2009
2
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
select financials of Porsche and the top automakers.) Ironically, over 60% of Porsche’s pre-tax
earnings came from trading derivatives. All of the options trading Porsche was involved in pertained
to its stake in VW. Porsche used the options to hedge against the likelihood that VW’s shares would
rise after its interest was made public. 8
Porsche was renowned for the quality of its products. For three consecutive years (2006-2008),
Porsche was the top ranking brand in J.D. Power and Associates “Initial Quality Study” (IQS). The
study ranked brands by the fewest problems per 100 vehicles. Porsche spent about 12% of revenue on
R&D compared to an industry average of 4% to 6%. (See Figure 1.) Approximately 19% of Porsche
employees worked in its R&D facility compared to 6.6% at Volkswagen.
R&D Expenditure as % of Revenue for Select Auto Makers (2007)
300,000
14
250,000
12
8
150,000
6
100,000
%
10
200,000
Revenue
% on R&D
4
Porsche
Fiat Group
Automobiles
Nissan
Honda
0
Ford
(automotive)
0
VW
2
GM
(automotive)
50,000
Toyota
US$ Millions
Figure 1
Source: Annual Reports.
Turnaround
Porsche hit a speed bump in the early 1990s when production processes described as “fat and
wasteful” 9 and a weak U.S. economy sent orders plummeting. Between 1986 and 1993 Porsche’s
sales had fallen from more than 50,000 units to 14,000 units. 10 The company was teetering on the
verge of bankruptcy, and there were whispers about a possible takeover.
8
Richard Milne, “Share Options Put Porsche on a Faster Path to Profit,” Financial Times, November 12, 2007.
9
Tom Mudd, “Back in High Gear,” Industry Week, February 21, 2000.
10
Ibid.
AUGUST 25, 2009
3
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
Newly named Porsche CEO Wendelin Wiedeking orchestrated a turnaround focused on building new
core competencies in lean manufacturing and synchronized engineering. In the past, Porsche’s
celebration of craftwork encouraged individuals to work on their own processes rather than
collaborating with the entire production line. But this soon became a significant handicap for the
company. Engineers were tempted to ignore the need for cross-department cooperation on Porsche’s
own car designs while making handsome profits for Porsche on outside sales of engineering
services. 11 As one industry observer put it, “Porsche didn’t have a full-fledged, adult-rated
simultaneous engineering process in place. It was still struggling to completely shed the rigid,
sequential system upon which it had relied for decades.” 12 Wiedeking introduced lean manufacturing
and the team concepts and processes followed by industry giants Toyota, Nissan and BMW.
Part of the turnaround included the decision to extend Porsche’s product line beyond the sports car
niche it had dominated for many decades. As Wiedeking explained, “Our strategy is to go beyond the
one-dimensional product range we have had so far.” 13 As Figure 2 shows, Porsche’s production and
sales doubled in just six years as did its revenue through organic growth.
Figure 2
Porsche Sales, Production and Revenue Results (1999-2008)
8,000.0
120,000
7,000.0
100,000
Units
80,000
5,000.0
4,000.0
60,000
3,000.0
Eur million
6,000.0
Production
Sales
Revenue
40,000
2,000.0
20,000
1,000.0
2008
2007
2006
2005
2004
2003
2002
2001
2000
0.0
1999
0
Source: Porsche Annual Report.
In 2003 Porsche introduced the Cayenne, an SUV which was entering into a crowded field of
competitors inhabited by Acura, Audi, BMW, Mercedes, Land Rover, Volkswagen, Volvo, Lexus,
and Infiniti. The year the Cayenne was introduced, Porsche’s vehicle production shot up from 50,000
11
Womack, James and Daniel Jones, Lean Thinking: Banish Waste and Create Wealth in your Corporation, 1996, p. 192.
12
Christopher Jensen and Don Sherman, “The Porsche Process,” Automotive Industries, November 1, 1997.
13
Brandon Mitchener, “Rebounding Porsche Seeks to Shift More Output Abroad,” The Wall Street Journal Europe, December 6, 1995.
AUGUST 25, 2009
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WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
to 75,000 units a year. 14 The Cayenne, produced in collaboration with VW at VW’s factory in
Slovakia and which shared the same frame and doors as VW’s Touareg, was derided by many as a
“corruption of the brand.” 15 In fact the day after Porsche unveiled the first Cayenne prototype, the
company’s share price fell more than 4%. 16 Porsche CEO Wiedeking was aware of the risk the
company was taking in being so closely associated with a mass production carmaker that produced a
cheaper SUV. 17 It was a risk he believed would pay off down the road.
Porsche’s first foray outside of its sports car market was not an immediate hit. The early version of
the Cayenne was plagued with quality problems earning it the least reliable rating from Consumer
Reports magazine. In its efforts to correct problems with the Cayenne, the company went through a
cultural alignment of sorts. As one industry observer noted, “Sports car engineers didn’t quite
understand the demands of the many female buyers who ended up making the Cayenne their daily
runabout.” 18 One of those demands was having the capability to unlock the Cayenne from a much
further distance. Porsche key fobs were originally designed to unlock sports cars at a very close
distance. Porsche went to work to fix this defect and other more serious problems, and by 2006 the
Cayenne occupied the No. 1 spot in the IQS which measured buyer satisfaction in the first 90 days of
ownership. 19
In 2005, Porsche announced that it would be making another move outside its sports car niche. In
partnership with VW, Porsche would produce a luxury sedan called the Panamera (named after a
Mexican long-distance car race 20 ) which would compete against models produced by Mercedes,
Aston Martin, and Audi. The Panamera was being built in a low-cost part of East Germany and was
scheduled to launch in 2010. 21
Despite the significant changes to the company’s product line, Porsche’s outside engineering
business, PEG, remained focused on selling services based on Porsche’s strength in engineering.
Outside Engineering at Porsche
Providing outside engineering services for carmakers had always been an important part of Porsche’s
business model. While clients owned the research that Porsche conducted on their behalf, Porsche
reserved the right to use the research if the client chose not to, with the understanding that it would
14
Bret Okeson, “Engineering is Porsche’s Secret Weapon,” Automotive News, January 15, 2001.
15
Jeremy Cato, “Porsche Revs Up for Explosive Growth,” The Globe and Mail, February 22, 2007.
16
Scott Miller, “Road More Traveled,” The Wall Street Journal, August 21, 2002.
17
Jeffrey Fear and Carin-Isabel Knoop, “Dr. INg. H.c. F. Porsche AG (A): True to Brand?” HBS Case No. 9-706-018, Harvard Business School Publishing,
2006.
18
Jeremy Cato, “Porsche Revs Up for Explosive Growth,” The Globe and Mail, February 22, 2007.
19
Ibid.
20
Stephen Power, “The Family Porsche,” The Wall Street Journal, July 28, 2005.
21
Jeremy Cato, “Porsche Revs Up for Explosive Growth,” The Globe and Mail, February 22, 2007.
AUGUST 25, 2009
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WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
not be sold to anyone else. Porsche could test or develop ideas that the company would not have been
able to fund on its own. 22
For several decades VW had been Porsche’s main client. In 1949, Porsche and VW signed an
agreement under which Porsche was forbidden to design a car for any other company with an engine
between 1.0 and 1.3 liters through 1974. 23 The formality of this agreement, however, was in dispute
with others characterizing the contract as a “loose agreement” between Ferdinand Porsche and VW’s
chairman in which about 40% of Porsche’s development capacity belonged to VW over a certain
number of years. 24
By the 1980s Porsche was working with a variety of carmakers as well as motorcycle producer
Harley Davidson. In 1991, the company founded Porsche Engineering Services Inc. based outside of
Detroit, Michigan to serve the growing engineering demands of the North American market. As a
wholly-owned subsidiary of Porsche AG, PES was able to work with a wide array of carmakers. As
the CEO of PES explained, “We’re not a competitor to automakers, due to the limited number of
vehicles we produce. But we try to convince them that two OEMs working together, rather than one
OEM and supporters, makes a difference. We understand the fundamentals of automaking.” 25
In 2001, PES became the North American arm of the Porsche Engineering Group. With 400
employees, PEG was based out of Porsche’s R&D center in Weissach, a town of 7,000, 23 kilometers
from Porsche’s sales, marketing and production activities. PEG engineers had direct access to
Porsche’s entire engineering team of 2,300 which was also based at Weissach. To reassure clients that
their projects would remain confidential, Porsche required all visitors to sign a confidentiality
agreement, making them liable if any secrets learned at the Weissach complex were revealed. 26 In
addition, the company not only kept the names of its clients confidential, but it also disguised the
vehicles tested on its private racing track.
PEG worked with virtually every auto maker in the world, with the exception of those that produced
luxury sports cars, and was also involved in projects involving elevators, forklifts, earthmovers, and
artificial knees. 27 While revenues of PEG were not disclosed in Porsche’s annual report, one source
indicated it accounted for 3% of turnover. 28
Of significant help to PEG engineers was a pool of nearly 600 graduate student interns who worked
alongside Porsche’s staff engineers. A budget of $30 million was allocated to finance paid internships
for the students as well as university or institute-based research studies conducted exclusively for
22
Jeff Daniels, Porsche: The Engineering Story, (Somerset, UK: Haynes, 2007), p. 129-131.
23
Randy Leffingwell, Porsche 911: Perfection by Design,” (Osceola, WI: Motorbooks, 2007), p. 68.
24
Ibid.
25
Gary Kobe and Lindsay Brooke, “How’s Outside Engineering,” Automotive Industries, September 1, 1994.
26
Bret Okeson, “Engineering Is Porsche’s Secret Weapon,” Automotive News, January 15, 2001.
27
Ibid.
28
Scott Miller, “Road More Traveled,” The Wall Street Journal, August 21, 2002.
AUGUST 25, 2009
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WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
Porsche. Porsche offered its top interns (typically about 10%) full time jobs, and those students who
did not get a job offer became part of an alumni network that would be called on to provide advice on
research and technology. A student intern cost 15% of what a full-time employee would cost. 29
Competitors and Market
The outsourcing of engineering services for carmakers was a growing industry. Some of the big
players for the automotive industry included Italy’s Stola and U.K.-based Hawtal Whiting and the
two U.S. automotive engineering companies MSX International Inc. and Modern Engineering Inc.,
each of which posted revenues between $100 and $500 million. Lotus Engineering was the only
carmaker with whom Porsche competed for outsourced engineering business.
These firms had seen their share of hard times. In the economic downturns of the early 1990s and
2000s, a lot of outsourced activities were brought in-house again. But by the mid-2000s, many of
these firms had their sights set on the U.S. auto industry where demand for outsourced engineering
was growing in spades due to production challenges and increased market segmentation. Between
1995 and 2005, the number of new car models produced by U.S. automakers grew 50% while the
annual sales per model dropped from 100,000 to 75,000 units. 30 As a CEO of a U.S.-based outside
engineering firm opined: “Outside engineering is a permanent change in the way business is done.
There’s no manufacturing business that needs to be vertically integrated anymore. It just costs too
much.” 31 The CEO of PES echoed this sentiment in 2005: “We’re following our customers’ changes.
The (automakers) have so many niche vehicles, it really compounds their resources. The downsizing
and reduction of engineering means there are gaps in some engineering programs. There are
opportunities for companies like us to provide that support.” 32 As one industry observer noted,
globalization was forcing many automakers to make the difficult decision of “entrust[ing] core
engineering services, and even the complete end-to-end design and development of a vehicle, to firms
with the experience, expertise and sheer innovative talent to help create better products, faster and at
lower cost. 33
Despite the up-tick in demand in the U.S. market, PEG sold PES to automotive supplier Magna
International in 2006 for an undisclosed sum. In commenting on the transaction, a Porsche executive
simply stated, “In the future, we will center all development activities for external customers in our
development centre in Weissach for efficiency reasons.” 34
29
Sigvald Harryson and Peter Lorange, “Bringing the College Inside,” Harvard Business Review, December 2005.
30
Terry Kosdrosky, “Switching Gears Pays Off,” Crain’s Detroit Business, October 10, 2005.
31
Stuart F. Brown, “New Products From Rented Brains,” Fortune, September 4, 2000.
32
Terry Kosdrosky, “Switching Gears Pays Off,” Crain’s Detroit Business, October 10, 2005.
33
Warren Harris, “Engineering Services Outsourcing,” PR Newswire, January 13, 2009.
34
“Magna Buys Porsche’s North American Engineering Services Unit,” Austria Today, August 10, 2006.
AUGUST 25, 2009
7
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
VW Takeover
Porsche made its first move towards VW in 2005 when it acquired a 20% stake igniting a rumor that
its eventual takeover of VW was not an “if” but a “when.” After all, it was no secret that VW was an
important partner and supplier to Porsche. In March 2007, Porsche upped its stake to 31% by paying
€5 billion ($6.6 billion), 35 an investment that was worth €16-17 billion ($23.4 billion) 36 by October
of that same year. 37
On the surface, it appeared as if Porsche and Volkswagen had little, if anything, in common. With
12,000 employees, Porsche was a small independent player in the auto industry focused on the
performance sports car market. It typically sold about 100,000 cars a year at prices that ranged from
$50,000 to more than $150,000. Historically, it had had few if any direct competitors. Other high-end
sports car manufacturers like Ferrari, Maserati and Lamborghini never had the production numbers to
threaten Porsche’s sales. Companies like Mercedes Benz, BMW and Audi each produced more than
10 times the number Porsche did but for a wide range of vehicles outside the sports car market.
The Volkswagen Group sold more than 6 million cars a year. With 2007 revenue topping $160 billion
(Figure 3) and 340,000 employees, it was the world’s fourth largest carmaker (based on units sold)
with a portfolio of eight brands that included Audi, Bentley, Lamborghini, and truck manufacturer
Scania, with prices ranging from $18,000 to $250,000. It wasn’t until the late 1990s that VW began
moving up-market purchasing Rolls-Royce, and Italian sports carmakers Lamborghini and Bugatti all
in one year. 38
Figure 3
Revenue and Net Income for Select Automakers, 2007 (US$ millions)
300,000
US$ Millions
250,000
200,000
150,000
100,000
50,000
0
-50,000
Revenue
Net Income
Toyota
GM
(automotive)
VW
Ford
(automotive)
Honda
Nissan
Fiat Group
Automobiles
Porsche
262,394
180,000
160,285
154,400
121,200
108,242
39,433
10,060
17,146
-39
6,030
-5
6,060
4,823
1,181
9,400
Source: Annual Reports.
35
€1 = US$1.32 (March 1, 2007)
36
€1 = US$1.42 (October 1, 2007)
37
Ray Hutton, “Porsche Set to Take the Wheel at VW,” The Sunday Times, October 14, 2007.
38
Jon Ashworth, “Porsche’s New Empire,” The Business, March 31, 2007.
AUGUST 25, 2009
8
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
Despite their differences, VW and Porsche’s histories were intimately intertwined. It was Ferdinand
Porsche’s engineering company that, in the 1930s, designed the first Volkswagen which later became
known as the VW Beetle. A few years later, the first Porsche debuted with some of the same
components used on the VW Beetle. More recently, Porsche and VW had built cars that shared
platforms and components. In addition to sharing research and development, the two companies’
leadership shared familial bonds. Legendary German-Austrian engineer Ferdinand Karl Piëch, the
grandson of Ferdinand Porsche, was the chairman of Volkswagen’s supervisory board and the
Porsche and Piëch families together owned 50% of Porsche’s shares and 100% of its voting stock. 39
Their alliance based on old family relationships allowed both companies to develop technology
jointly without concern for confidentiality.
The ability to scale and create synergies across a number of areas were two driving forces that led
Porsche to secure its partnership with VW. As Wiedeking explained, electronics was one area of
particular interest: “Electronics account for 30% to 35% of our development costs. Spreading this
investment over 2 million cars instead of Porsche’s 100,000 will make a big difference and the
components will be cheaper.” 40 Furthermore, the capital intensity of R&D and required fixed assets
in new technologies would be increasing, making it increasingly difficult for a premium-only OEM to
survive unless operating in the context of a larger OEM. Forming closer ties with VW would also
enable Porsche to benefit from VW’s more fuel efficient technologies at a time when new emissions
regulations would come into effect.
On a more macro level, by acquiring VW, Porsche was helping protect itself from the ups and downs
of the auto sector. As one industry observer wrote, “A huge mainstream global car company like VW
was in a better position to weather any marketplace vagaries than a luxury brand like Porsche.” 41
While Porsche looked at the VW takeover as a way to leverage synergies, Porsche and VW would
exist as two separate companies that would sit under a new holding company called Porsche SE. (See
Exhibit 2.)
A Repeat of Daimler-Chrysler?
While many in the industry believed that Porsche’s acquisition of VW was a wise move, others
expressed concern that VW would prove to be a distraction for Porsche, particularly at time when the
company was about to enter another new car market with its luxury sedan the Panamera. As one
industry observer wrote, “As we’ve seen at Daimler-Chrysler, when cultural issues are in play, the
products can suffer and when the products suffer, so does everything else at a car company.” 42
39
Michael Connolly, “Porsche Tightens Grip on VW,” The Wall Street Journal, November 15, 2006.
40
Ray Hutton, “Porsche Set to Take the Wheel at VW,” The Sunday Times, October 14, 2007.
41
Jeremy Cato, “Porsche Revs Up for Explosive Growth,” The Globe and Mail, February 22, 2007.
42
Mark Landler, “Porsche and VW: One Happy Family?” The New York Times, December 23, 2007.
AUGUST 25, 2009
9
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
However, Wiedeking was adamant that the Porsche brand and culture would remain well protected:
“Believe me, if you mix the Porsche guys with the Audi guys and VW guys you will have trouble.
Each is proud to belong to his own company. My Porsche people are very proud of what they have
achieved. They don’t want to build a bastard in the future. They want to build a Porsche.” 43
But whether keeping Porsche and VW as separate operations under a Porsche holding company
would adequately protect the engineering and design talents that Porsche was known for was not
certain. And whether the carmakers that PEG had provided services to in the past would rethink their
relationship with Porsche now that it would be producing a number of competing car models was also
not certain. What was certain was that Porsche was no longer a small, nimble, carmaker focused
solely on the luxury sports car market. With VW now under its wing, Porsche would soon be
everywhere.
43
Ray Hutton, “Porsche Set to Take the Wheel at VW,” The Sunday Times, October 14, 2007.
AUGUST 25, 2009
10
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
Exhibit 1
Selected Financials for Carmakers, 2007 (revenue and net income in US$ millions)
Toyota
Revenue
Net Income
% on R&D
unit sales
#
employees
262,394
17,146
3.6
8,900,000
GM
(automotive)
180,000
-39
4.5
9,286,000
299,394
266,000
VW
160,285
6,030
4.2
6,191,618
Ford
(automotive)
154,400
-5
4.9
6,553,000
329,305
246,000
Honda
Nissan
121,200
6,060
4.9
3,652,000
108,242
4,823
4.8
3,700,000
Fiat Group
Automobiles
39,433
1,181
2.8
2,233,800
179,000
180,535
50,542
Porsche
10,060
9,400
11.8
98,652
12,202
Source: Annual Reports.
Exhibit 2
Porsche SE
Porsche SE
Porsche AG
(100%)
Porsche
Consulting
(100%)
Porsche
Engineering
(100%)
Volkswagen
Porsche
Design
(65%)
VW (100%)
Skoda
(100%)
Bentley
(100%)
Audi
(99.14%)
Seat (100%)
Lamborghini
(100%)
Source: Porsche Annual Report.
AUGUST 25, 2009
11

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