Assignment: FINANCE & CONCEPT
1. Using Assessing a Company's Future Financial Health reading, :
A. Identify the unidentified industries in Exhibit 3.
B. Go to IBIS database. Identify industry averages for the years for the discount/retail industry for the years 2011 and 2012.
C. Find 2 top players in this industry. Calculate % growth statements for the top 2 players for the following .
Revenues, COGS, net income and ROA
2. Assume that you are the managing director of an angel network and you have received two mini-business plans from two different companies. How would you differentiate them and what would cause you to favor one plan over the other?
3. You have secured job offers as chief operating officer (COO) at two companies, both of which are in the advanced materials industry. Each of these companies launched three to four years ago and is experiencing a rapid growth phase.
The CEO of Company A is a materials science engineer who has also completed an executive MBA program, and her three patented inventions are the basis of the company's product line. This is the first company that she has led. Company A is backed by venture dollars.
Company B also has a robust patent portfolio, with the inventor/co-founder serving as the company's chief technology officer. The CEO of Company B was recommended by the venture capital firm that funded the latest growth stage. The CEO has a limited technical background but has led two companies to a successful exit (following two failures in his early career).
Based on the leadership profiles of the CEOs, and assuming all other things are equal, for which company and CEO would you prefer to work, and why?
4. Fenner Drives, a Pennsylvania-based company with over 5,500 employees worldwide, is a manufacturer of "high performance alternatives to conventional rubber belts in power transmission applications." While Fenner's strategy, capabilities, and creation of value are focused on its core competencies of making engine belts, power transmission belts, and conveyor belts, an opportunity arose to grow their business in an interesting manner.
According to a LancasterOnline article, "It turns out that the raw material Fenner uses for some of its belts isn't that different from the plastic used in 3D printing . . . so similar, in fact, that some 3D printing users had been buying Fenner belting material and feeding it into their printers. hey liked it because it was rubbery, unlike typical 3D filament, which tends to be brittle once it hardens.
a. What should Fenner do? What's the opportunity? Perform a VRIO test for Kenner's belts for 3D printing.
b. Is this a vertical integration or horizontal integration? Is it forward or backward/ related/unrelated diversification?
5. Each year, students at colleges and universities around the world develop plans to create new ventures as part of courses or through business plan competitions. Many of these business visionaries launch these companies from their dorm rooms. As the reading highlighted, the majority of new ventures do not survive the test of time, with many of the failures attributed to premature scaling.
A new student venture in the Internet of Things space received $25,000 from the university business plan competition for its first patent- pending invention. A local angel group also invested $200,000, allowing the CEO, Mary Bister, a current graduate student, to begin to scale.
Though early adopters would likely pay to test the patent-pending product's beta version, no feedback has been received from any potential users. Mary uses the funds to hire two full-time developers (one junior and one senior) to continue creating extra features on the product's beta while also developing a second, and hopefully a third, offering in the product line. The junior product developer reports to the senior product developer, who then reports to the CEO. Most investment funds have been used for these new hires and the product development equipment. Now, the CEO is searching for additional investors to hire a salesperson and for her to travel to industry trade shows and key potential customer locations in New York, Chicago, Austin, and Los Angeles.
What fatal business mistakes could Mary Bister be making with regard to economies of scale and economies of scope?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.