Discussion Post: Marketing
• Should Haier market Maytag's current brand names or should Haier replace Maytag brands with the Haier corporate brand Name?
o merits of global branding, multi-product brand
o pros and cons for marketing vs. replacing Maytag's current brand names
• How much is the Maytag Corporation approximately worth? If Haier submitted a bid for Maytag, what would be a bid price?
o from a financial perspective (price-earning or P/E ratio):
- market value = "multiple" x EPS x common shares outstanding
- industry "multiples" ranges from 16-21
- projected earning-per-share: $.54 (2005), $.75 (2006), and $.80 (2007)
- common share outstanding = dollar value of bid ($1,13 billion)/share price bid ($14)
o What the biding price is actually buying (tangible and intangible) based on Maytag's consolidated balance sheet for 2004 (Exhibit 8A)?
o from a strategic perspective (how much is the Maytag worth to Haier) -- benefits, cost and opportunity cost.
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.