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If there is one universal attribute that applies to all investors, it is the undying thirst for higher returns. Venture capital (VC) is founded on this fundamental premise, as it has great potential to provide returns far in excess of conventional methods of investments. What makes VC so important is that it is often the only source of funds to new entrepreneurs, as banks and financial institutions provide finance only against securities or guarantees. VC has grown from a small investment pool in the 60s and 70s to a full-fledged investment tool and a key element in corporate and institutional investment portfolio.
The term 'venture capital' is often used interchangeably with private equity investing, which refers to venture investing and buy out. The astonishing growth and successes of new generation companies such as Apple, Intel, Federal Express, Microsoft, Yahoo and Cisco is a sterling tribute to VC, as these…
Asian Development Bank Report - 'Development of Venture Capital in China', May 2002, Retrieved at http://www.adb.org/Documents/Reports/Dev_SME_Fin_System/sme_v1_taskb.pdf . Accessed on 26 April, 2004
Axiss Australia, Australian Government - 'Venture Capital and Private Equity in Australia', Data File Series, 2004, Retrieved from www.axiss.com.au/content/pubs/_data_file_series/downloads/venturecapitalfinal2004.pdf. Accessed on 26 April, 2004
Bovaird, C - 'Introduction to Venture Capital Finance', London; Pitman, 1990, pp.32-36
BVCA - 'The economic impact of private equity and venture capital in the UK Economy', November, 2003, Retrieved from www.altassets.com/casefor/countries/2003/nz4084.php. Accessed on 26 April, 2004
According to the National Venture Capital Association (NVCA, 2012), the venture capital industry is attracted to companies that are developing significant innovations. Some examples cited are a new piece of software, a new drug or a new model for consumer sales. Venture capitalists enter the industry when the product is ready to take to market, and is in a position to enjoy significant growth. Venture capitalists therefore seek out businesses with a high potential for success, and they provide the capital that allows those businesses to succeed.
The businesses that venture capitalists prefer are at a stage where they are more than just an idea, that there is something the company can take to market. Venture capitalists want to see that there are revenue streams coming down the pipeline, because the venture capitalist needs to be able to envision an exit strategy.
Often, venture capitalists seek out companies where…
Babson. (1999). Neverfail computing. Arthur M. Blank Center for Entrepreneurship. Retrieved May 7, 2012 from http://higheredbcs.wiley.com/legacy/college/bygrave/0471755451/add_cases/neverfail_case.pdf
Koester, E. (2009). Venture capital term sheet: Registration rights. Avvo. Retrieved May 7, 2012 from http://www.avvo.com/legal-guides/ugc/venture-capital-term-sheet-registration-rights
NVCA. (2012). VC industry overview. National Venture Capital Association. Retrieved May 7, 2012 from http://www.nvca.org/index.php?option=com_content&view=article&id=141&Itemid=589
According to the National Venture Capital Association in the United States, venture capitalists help entrepreneurs "turn innovative ideas and scientific advances into products and services…" Venture capitalists do this by providing both funding and guidance, typically to small businesses that need this funding and guidance to take good ideas into the rapid growth stage of the business life cycle. Venture capitalists usually focus on new, innovative products and techniques. VC not only lends entrepreneurs they money that they need to bring a product to market, but also can provide managerial expertise, especially to firms that are otherwise run by scientists, engineers or investors. That business expertise helps to ensure that the business can manage its rapid growth through the IPO process.
A venture capitalist takes on a significant amount of risk, in that when the VC invests, the business idea has not yet proven to be viable in the…
NVCA. (2012). VC industry overview. National Venture Capital Association. Retrieved May 2, 2012 from http://www.nvca.org/index.php?option=com_content&view=article&id=141&Itemid=589
"Southern Cross Latin American Private Equity Fund." IESE Business School E-115-E.
What venture capitalists agree?
The venture capital industry is riddled with both mystery and intrigue. Often, many venture capitalists are captivating by markets and technologies completely original in regards to product offerings. However, by pursuing these risky endeavors, many newly formulated companies and technologies crumble shortly after inception. To mitigate these risks, venture capitalists formulate measures to reduce the risk associated with investing in start up projects. Because success often hinges of personal fortitude and experience, venture capital investment criteria often vary between organizations.
Within the case, many core concepts regarding venture capital funding remained constant. One of these concepts was proper timing. All venture capitalists agreed that timing is a critical function in regards to overall returns. The nature of venture capitalism is inherently risky. As a result, venture capitalists must be compensated in accordance with the underlying risk associated with the venture. Depending on the timing…
Investible PTY LTD. offers a degree that distinguishes and creates pioneering capability and limits the risk of pre-IPO speculation. The organization gives business constructing projects; and creates a pipeline of investible companies and startup organized functionality. It offers the “lab,” expert enterprise development and execution motor that ensures individuals are geared up with the gadgets to collect and process data, create further decisions, networks, and additionally put in place compliances. Investible acts as the admission to an association of startup funding, which can open doorways to potential partners for businesses and the firm. Investible PTY LTD modified into consolidated in 2015 and is situated in Sydney, Australia. According to LinkedIn, Investible has roughly twenty-five employees. Comment by Ingrid Martin: These two sentences don’t make sense?? Comment by Ingrid Martin: Which is what? Comment by Ingrid Martin: I’m not sure where this information comes from but it is really confusing……
Furthermore, capital gains normally tend to be spread across a wider income scale than many believe. According to the IRS Individual Income Tax Returns, Preliminary Data, 1992 federal income tax returns, 55% of returns claiming capital gains were from incomes of $50,000 or less, including a capital gain (Thorning, 1995). hat this information appears to come down to is that the capital gains tax affects almost everyone, which happens to affect the economy in general.
Tax Act of 2011
ith some of the huge advantages that have been back loaded, the Tax Relief Act of 2001 displays itself as more of a tax odyssey than what would be considered a tax act. The most positive of those that are called our planners really just provide estate tax repeal which is a 50/50 possibility of essentially being executed. Taxpayers and planners similarly are left with the troublesome query, "hat is the…
Gordon, M. (2209). Stock Market Looks More Like Face of America, Survey Says. The Associated Press Business News, 25.
John Freear and William E. Wetzel, J. (2009). Who Bankrolls High-Tech Entrepreneurs? American Council for Capital Formation Center for Policy Research,, 101.
Michael J. Graetz. (2010). Distributional Analysis of Tax Policy. Discovery and the Capitalist Process, 105-121.
Robert Gillingham, a. J. (2007). The Effect of Marginal Tax Rates on Capital Gains Revenue,. National Tax Journal, 123.
Making a decision as a venture capitalist, whether as a director/adviser for a venture capital firm or as an individual investor looking for a substantial investment opportunity, requires a great deal of consideration on various levels. Before a decision to invest is made, a careful consideration of the quantitative and qualitative aspects of a company must be undertaken, and the potential payoff of any investment must be weighed against the risks identified both within the company and in its operating environment. The following paragraphs will present a brief analysis of two publicly traded companies that are well-established, yet are also potentially large investment opportunities for an entity with an appropriate amount of capital. The risks and current states of these companies will be assessed along with other details and information in order to determine which company represents the best investment.
pSividia Corp., founded in 1987, specializes in…
Yahoo Finance. (2011). PSVD. Accessed 2 June 2011. http://finance.yahoo.com/q/pr?s=PSDV+Profile
Yahoo Finance. (2011). SMED. Accessed 2 June 2011.
This would involve winding down investment banking to focus on venture capital. A second option is to start a fund in Russia, with local partners there, to capitalize on that country's telecommunications market. The company could be split under the second scenario into three different divisions. The third option is to retain the status quo, which has generally been successful, but offers limited upside compared to the other options.
t is recommended that the first option be undertaken. There are a few good reasons for this. The third option offers limited upside. As the up-front cost of technology increase for telecommunications providers, Columbia's principles are going to be increasingly unable to meet the capital requirements. So this option is superior to the status quo. The investment banking option can be cut, but do not feel that it needs to be, especially when the second option involved hiring professional management to…
It is recommended that the first option be undertaken. There are a few good reasons for this. The third option offers limited upside. As the up-front cost of technology increase for telecommunications providers, Columbia's principles are going to be increasingly unable to meet the capital requirements. So this option is superior to the status quo. The investment banking option can be cut, but I do not feel that it needs to be, especially when the second option involved hiring professional management to run the investment banking arm.
The second option, overall, is too complex to be executed right now. Columbia has been successful because the principles have expertise the subject area and take a hands-on approach. They are the classic "value-added" venture capitalists, whose input dramatically increases the value of the investment. Operating in Russia or South America takes the principles outside of their comfort zones. Within a couple of days of this meeting, the risks inherent in Russia will become apparent, and even if the partners wanted to invest in Russia they would have scrapped the program on account of the financial crisis. South America, of course, had its own financial crisis in 1999.
The instability of the emerging markets, and the lack of familiarity of the principles with these markets means that they are taking on far too much risk. In addition, there are the risks associated with moving from a simple, flexible organizational structure to one characterized by complexity, joint ventures, uncertain chains of command and investments in businesses the principles have little experience with. Thus, the second option is too risky. Under the first option, the principles can make one or two strategic investments overseas to move slowly along the learning curve. It is recommended, therefore, that Columbia accept outside capital in order to facilitate growth, but also as retain control of the company and provide more opportunities to the younger partners.
" (Kinnunen, 2004) the work of Kaplan and Schroar (2003) states findings that the past performance is highly relative to capitals flows to private equity funds.
The work of Mishra, Kemmerer, and Shenoy entitled: "Managing Venture Capital Investment Decisions: A Knowledge-ased Approach" relates the building of a causal map of the investment decision through use of interviewing venture capitalists and then converting this information into a "causal ayes net" which are stated to be "especially suited for domains characterized by a high degree of uncertainty." (Mishra, Kemmerer, and Shenoy, 2001) This technique has also been utilized in developing artificial intelligence and even used "in medical diagnosis, modeling portfolio risk and return, and new product development..." And are based on "probability theory." (Mishra, Kemmerer, and Shenoy, 2001) This method is reported to be one that increases the likelihood of gaining an understanding of the decision-making process of Venture Capitalists (VCs) and…
Kaplan, S. & Schroar, a. 2003. Private Equity Performance: Returns, Persistence and Capital Flows. MIT Sloan Working Paper No. 4446-03; AFA 2004 San Diego Meetings.
Cochrane, John H. The Risk and Return of Venture Capital. Working paper, University of Chicago, 2001.
Kinnunen, Harri (2004) Institutional Investor's Decision Making Criteria for Investing in Venture Capital Funds. Frontiers of E-Business Research 2004. Online available at http://www.ebrc.info/kuvat/695-709_04.pdf
Patel, Pankaj and D'Souza, Rodney (2008) Uncovering Knowledge Structures of Venture Capital Investment Decision Making. A Working Paper for SBA Office of Advocacy. Jan 2008. Online available at http://www.sba.gov/advo/research/rs315tot.pdf
Capital orks seeks to explain the venture capital industry, debunk myths and offer a view of what the role of venture capital is to the U.S. economy.
Zider begins by explaining that venture capital does not provide as much money to start-ups as is often considered to be the case. In general, venture capital goes to follow-on funding for projects that were originally developed by governments or corporations. Those latter bodies perform the innovation task, and venture capital comes in once the product/service has been developed somewhat and needs to be taken to market. Because of this, venture capital is short-term money, not long-term. The objective of the venture capitalist is to commercialize an idea and then exit either by taking the company public or selling to a larger company. Venture capitalists exist, Zider points out, because this segment of the capital markets is underserved by other players. In that…
Zider, B. (1998). How venture capital works. Harvard Business Review. Nov-Dec 1998.
D 20 Lev
D 50 Lev
5. The only project that is unacceptable is Project D. At the 50% leverage level. This has a negative NPV. The other projects at each leverage level all have positive net present values. The following graph shows the NPVs for the different projects:
6. My objective in making this decision is to maximize firm value. The projects are mutually exclusive. I would use NPV as the main criteria. This means that Project B. is the most desirable, at the zero leverage level. Project A is the second-most desirable, against at the zero leverage level. Project C. is the third-most desirable. Project D. is the least desirable and at the 50% leverage level is unacceptable. I feel that it is best to use NPV has the criteria…
Capital Requirement and Risk ehavior
Arab African International ank
Midan ElSaray El Koubra, Garden City Caoro
The research will mainly dwell on the capital requirements and risk behavior of banks, more in particular the credit risk. The purpose of this research is to identify and analyze the relationship between capital requirements and the risk behavior of banks in Egypt
more in particular the Arab African International ank, which is the case study for this research. Secondly, the research will seek to investigate the impact of capital regulation on the banking behaviors and particularly on the levels of credit risk of banks operating in Egypt
The findings of the research show that there is negative relationship between capital requirement and banks' risk behavior; the findings also show there is empirical evidence to prove that capital regulations have a negative impact on credit risk of banks levels of credit risk of banks…
Aggarwal, R. And K. Jacques, (1998), a Simultaneous Equation Estimation of the Impact of Prompt Corrective Action on Bank Capital and Risk, New York, 12-23
Avery, R.B. And A.B. Berger, (1991), Risk-based capital and deposit insurance reform, Journal of Banking and Finance pp 847-874
Berger, A.N., Herring R.J. And Szego, G.P. (1995), the Role of Capital in Financial
Institutions, Journal of Banking and Finance pp 19, 393-430.
The company finances foreign operations with debt from a number of different countries. It does this on the basis of the parent company's credit rating, which illustrates that the implicit understanding with respect to the parent company default guarantee of subsidiary debt holds across different debt markets (Stern & Chew, 2003, 394).
There are also times when the capital structure is determined more by strategic considerations than any other. Many firms operate foreign subsidiaries as joint ventures, for example, because this gives the firm greater access to foreign capital markets and usually reduces the country risk and market risk associated with the subsidiary, when compared to a greenfield subsidiary. There is evidence that firms using this tactic do so in part to reduce the costs associated with foreign market entry, including financing costs. Hennart's (1991, 483) study of Japanese subsidiaries in the United States showed that transaction costs played a…
Desai, M.; Foley, C. & Hines, J. (2003). A multinational perspective on capital structure choice and internal capital markets. Harvard Business School. Retrieved February 11, 2011 from http://www.people.hbs.edu/ffoley/capstructure.pdf
Gropp, R. (2002). Local taxes and capital structure choice. International Tax and Public Finance. Vol. 9 (1) 51-71.
Hennart, J. (1991). The transaction costs theory of joint ventures: An empirical study of Japanese subsidiaries in the United States. Management Science. Vol. 37 (4).
Stern, J. & Chew, D. (2003). The revolution in corporate finance. Malden, MA: Blackwell Publishing.
Although advertising costs can be substantial, it is essential that companies place significant amounts of funding into advertising. Such funding is necessary because it provides companies with a competitive advantage. According to Doraszelski & Markovich, (2007)
"Practitioners know very well the value of advertising to achieving their long-term market share and profitability goals. A survey of senior executives in 1999 reveals that 82.9% somewhat or strongly agree that good advertising can provide their company with an edge over the competition in the marketplace. Furthermore, 86.8% somewhat or strongly agree that advertising is a long-term investment that contributes to the financial growth and stability of their company (American Advertising Federation, 1999; Doraszelski & Markovich, 2007)."
The authors also explain that firms believe that advertising has the capacity to give them a sustainable competitive advantage over other firms (Doraszelski & Markovich, 2007). Nevertheless, dynamic models of advertising competition, assert that the opposite…
Bagwell, K. (2005) the Economic Analysis of Advertising. http://ideas.repec.org/h/eee/indchp/3-28.html
"Brand Value." http://dictionary.bnet.com/definition/brand+value.html
Doraszelski U., Markovich S. (2007). Advertising dynamics and competitive advantage. RAND Journal of Economics Vol. 38, No. 3, pp. 557 -- 592
Grullon G., Kanatas G. And Kumar P. 2006. The Impact of Capital Structure on Advertising Competition: An Empirical Study.
ith a strong customer and employee basis, the company envisions taking early leadership of the global market. This is also to be based upon management excellence on a local scale. The management team is envisioned to be capable of translating vision into performance on both a local and global scale, while also investing strategically to maximize profitability and performance.
d. In terms of Research and Development, Applied Materials has increased its investments despite economic downturns. The purpose of this was to increase its potential future profitability by providing advanced manufacturing systems for its customers worldwide. This proved to be a good strategy, as the company had build a broad product line that catered for nearly every chip manufacturing stage. In order to reach the next step; integrating systems to perform a specific process sequence, a new facility was needed, and 1997 saw the beginning of construction on the Equipment and…
With a strong customer and employee basis, the company envisions taking early leadership of the global market. This is also to be based upon management excellence on a local scale. The management team is envisioned to be capable of translating vision into performance on both a local and global scale, while also investing strategically to maximize profitability and performance.
d. In terms of Research and Development, Applied Materials has increased its investments despite economic downturns. The purpose of this was to increase its potential future profitability by providing advanced manufacturing systems for its customers worldwide. This proved to be a good strategy, as the company had build a broad product line that catered for nearly every chip manufacturing stage. In order to reach the next step; integrating systems to perform a specific process sequence, a new facility was needed, and 1997 saw the beginning of construction on the Equipment and Process Integration Center (EPIC).
EPIC represents the first facility of its kind in the semiconductor industry, in its capacity as a dedicated 200mm pilot line integration facility. Specifically, the Center enables the company's customers to make their technology transitions with greater speed and ease. To do this, the Center enables them to evaluate and integrate new manufacturing systems in advance of installing these. This provides the company with an important leading edge in the global marketplace. To accomplish this was a challenge on multiple levels that did not end with the Center opening its doors in 1998. Indeed, in order to adhere to its central aims, engineers for the center had to effectively implement systems by which they could set up their systems as often as once per month and make quick modifications according to differing requirements.
How firm raise capital by using venture capital? What conditions we need to raise capital by using venture capital?
Many startup companies are not mature enough to obtain capital from the public or secure a loan with the local banks in their area. They therefore, have to rely on venture capital as a way of raising capital for the firm to continue with the daily operations. Firms hence, raise capital by going out and looking for people who are willing to invest their money in a company that they see has the potential for growth. The company looks for a number of people who can pitch in large amounts of money depending on the nature and type of the business which if successful is expected to give above average returns to investors (Krishnan & Ivanov et al. 2011).
There exist certain conditions for a firm to secure capital…
Krishnan, C.V., Ivanov, V.I., Masulis, R.W., & Singh, A.K. (2011). Venture Capital
Reputation, Post-IPO Performance, and Corporate Governance. Journal Of Financial & Quantitative Analysis, 46(5), 1295-1333.
Hsu, Y. (2010). Staging of Venture Capital Investment: A Real Options Analysis. Small Business Economics, 35(3), 265-281.
Hopp, C. (2010). When Do Venture Capitalists Collaborate? Evidence on the Driving Forces of Venture Capital Syndication. Small Business Economics, 35(4), 417-431.
Financial Contracting for New Venture:
Investments in a new venture usually involve financial contracts between the entrepreneur and external investors. These external investors include venture capitalists, angel financiers, banks, private financing companies, and credits unions among others. Notably, financial contracts can have positive and negative effects on the new venture. For instance, an angel financier can add a clause on the financial contract that will not permit the entrepreneur to borrow more funds without permission from the lender. While this is likely to occur when the lending institution has a mortgage or lean on the venture's property, the clause is usually added to lessen foreclosure risk. As an individual seeking to venture in a clothing business for the Mixed Martial Arts customers to provide shirts, hoodies/fleeces, and hats, it is important to choose the most appropriate type of financial contracting with the external investor. This process of selecting the most…
Anderson, C. (2013, January 25). 8 Things You Need to Know About Starting A Fashion
Business. The Huffington Post. Retrieved January 10, 2014, from http://www.huffingtonpost.com/2013/01/24/starting-a-fashion-business_n_2534518.html
de Bettignies, J. (2008, January). Financing the Entrepreneurial Venture. Management Science,
54(1), 151-166. Retrieved January 10, 2014, from http://web.business.queensu.ca/faculty/jdebettignies/docs/EntrepFinPrintedVersion.pdf
Q1.hy did Intel Capital invest in Berkeley Networks? hy did Berkeley Network invite the investment?
Intel instituted a venture capital division in its company as a means to provide support to the industry. Intel is the world's largest manufacture of microprocessors. However, the company is also heavily dependent on other players in the industry who produce some of Intel's supplies or manufacture other components that work alongside Intel's processors. The interconnectedness of this industry has been referred to as a "market eco-system" because the success or failure of another company could have implications for the entire industry.
Although Intel commonly invests in other technology companies, it does not do so randomly. Intel targets their investments in other companies that do or could support Intel strategic interests. For example, if another company was manufacturing a product that was made to work with one of Intel's chips and…
Austin, S., 2009. Intel's Venture Capital Arm Sees No Signs Of Slowing Down. [Online]
Available at: http://blogs.wsj.com/venturecapital/2009/05/13/intels-venture-capital-arm-sees-no-signs-of-slowing-down / [Accessed 1 July 2012].
Geron, T., 2012. Intel Capital Revs Up $100 Million Connected Car Fund. [Online]
Available at: http://www.forbes.com/sites/tomiogeron/2012/02/29/intel-capital-revs-up-connected-car-fund / [Accessed 1 July 2012].
Further more, all signals exist in order to determine the venture capitalist to invest in the company, most notably the potential of the market and the rising demand for our product.
Nevertheless, the company needs to be able to assume the disadvantages we have previously mentioned, most notably a cession of part of the company's control and the capacity of the venture capitalist to participate in some of the important decisions.
1. First Capital Solutions - Project Development & Financial Solutions. On the Internet at http://www.1stcapitalsolutions.com/1_venture_capital.htm
2. Venture Capital. On the Internet at http://www.completeidentity.com/cv/other-vencap.htm
3. Sheridan Kate. How to Successfully Chase Venture Capital - A Step-by-Step Guide to a Lender-Friendly usiness Plan. July 2005. On the Internet at http://www.associatedcontent.com/content.cfm?content_type=article&content_type_id=5690&page=1
First Capital Solutions - Project Development & Financial Solutions. On the Internet at http://www.1stcapitalsolutions.com/1_venture_capital.htm
Venture Capital. On the Internet at http://www.completeidentity.com/cv/other-vencap.htm
Sheridan Kate. How to Successfully Chase Venture Capital -…
1. First Capital Solutions - Project Development & Financial Solutions. On the Internet at http://www.1stcapitalsolutions.com/1_venture_capital.htm
2. Venture Capital. On the Internet at http://www.completeidentity.com/cv/other-vencap.htm
3. Sheridan Kate. How to Successfully Chase Venture Capital - A Step-by-Step Guide to a Lender-Friendly Business Plan. July 2005. On the Internet at http://www.associatedcontent.com/content.cfm?content_type=article&content_type_id=5690&page=1
First Capital Solutions - Project Development & Financial Solutions. On the Internet at
Business Financing and the Capital Structure
Generally, businesses need to make several financial decisions that have significant direct effects on their operations and success in the increasingly competitive marketplace. However, there are numerous varying options that are available to businesses regardless of the types and sizes. The concept of business financing has emerged as an important aspect in the modern business environment because of the various financial decisions to be made by different firms. The main aim of this concept is to generate enough capital for the business to meet its existing needs in order to promote the growth of the business. In addition to generating capital for the growth of the business, business financing helps firms to meet the recurring financial obligations.
Use of Financial Planning in Estimating a Corporation's Asset Investment equirements:
Financial planning can be considered as a process that is used to approximate the financial requirements…
Coplan, J.H. (2009, December 4). Raising Capital: Equity vs. Debt. Bloomberg Businessweek
Magazine. Retrieved June 2, 2013, from http://www.businessweek.com/magazine/content/09_72/s0912030511552.htm
Melicher, R.W. & Norton, E.A. (2011). Introduction to finance: markets, investments, and financial management (14th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
Sharp, R. & Hua, W. (2004, January 4). International Investing: The Risks and Rewards.
Anwar Venture Corporation is supportive of entrepreneurship and especially related to entrepreneurship among disabled and handicapped U.S. armed services veterans. The Board of Directors is answerable directly to stakeholders in the company. Next, in the hierarchy of the organizational structure are managers and supervisors in human resources and venture funding departments. Human Resources is further in charge of and responsible for all employee hiring, orientation, training, locational placement, as well as other matters concerning employee - company matters. Anwar Venture Corporation has an open-door policy and employees are highly encouraged to approach their immediate supervisor and manager and speak directly and concisely to them in relation to any concerns, problems, or challenges that the employee faces while in the employment of Anwar Venture Corporation.
VII. SEXUAL HARASSMENT TRAINING PROGRAM
Anwar Venture Corporation will not tolerate sexual harassment in any form whatsoever and individuals having been found guilty of committing acts…
4. Process and Method of Investigation of Sexual Harassment
Upon an employee reporting an incident of sexual harassment, a full investigation will ensue. This investigation will be assisted by an independent sexual harassment caseworker in order to avoid any possible bias in the assessment of the alleged incident.
Anwar Venture Corporation: Human Resource Manual 2008
al.); (Rahman, 136- 138) (Dasgupta)
From the segmentation analysis and mobile content revenues forecast, the need for launching the low-cost and ultra-low cost mobile cellular phone business in India based on value-added services that can be incrementally added to consumers' accounts is preferable to concentrating only on price alone. Creating the unique value proposition for the service based on mobile content also is attractive to potential partners who are necessary for the nationwide success of the company across India's broad geographic regions. This concentration on value-added services is also critical when the competitors to the proposed company are also taken into account. The following section provides insights into the competitive landscape in India for cellular and telecommunications.
Competitive Landscape and Analysis
The following is an analysis of the competitive landscape of providers that the proposed company will need to partner with in some cases, and compete with in others. Clearly…
AMR Research Study. Research Alert on Cellular Phone Costing and Forecast Alert. August 2005. Boston, MA. ABI/INFORM Trade & Industry. ProQuest.
Mike Clendenin. "Tale of two cell phone markets: INDIA and CHINA. " Electronic Engineering Times 4 Jun 2007: 33-34. ABI/INFORM Trade & Industry. ProQuest.
Nibedita Das. "Technology, efficiency and sustainability of competition in the Indian telecommunications sector. " Information Economics and Policy 12.2 (2000): 133-154. ABI/INFORM Global. ProQuest. 6 May. 2008
Anjan Dasgupta. Competition Policy in Telecommunications - a Case Study of India. 2005. ABI/INFORM Global. ProQuest. 8 May. 2008
FEED esource ecovery
FEEDs source of competition in the short- and long-term
The major source of competition for FEED is their introduction of a decentralized program, as most of the huge manufacturers of waste management have ignored the small market segment including grocery markets. Therefore, this targeted strategy in focusing only on the small segment of the industry and starting the decentralized anaerobic program. In addition, Europe also has targeted on the extensive food waste anaerobic program. Therefore, on-site design incorporation will extremely be appreciated because of the improving green technological innovation and fuel costs. FEED has rightly targeted to build in the on-site decentralized design, which in the long-term can be applied in any organization or business sector. Since, the current natural technologies are becoming extremely expensive for the small-scale entrepreneurs to adopt certain technological innovation. Moreover, the other technological innovation has used the transportation add-on to transport waste…
Allen, K.R. (2012). Launching new ventures: An entrepreneurial approach. Mason, OH: South-Western, Cengage Learning.
Etukuru, R.R. (2011). Alternative investment strategies and risk management: Improve your investment portfolio's risk-reward ratio.
Kurtz, D.L., & Boone, L.E. (2011). Contemporary business. Hoboken, N.J: Wiley.
Longenecker, J.G. (2012). Small business management: Launching and growing entrepreneurial ventures. Mason, OH: South-Western Cengage Learning.
This information will affect the opportunity cost of the decision, because the company will not have any access to the Chilean market. Well, more likely it will need to sue via the WTO over the policy, so it would eventually gain access to the Chilean market, but until that happens would be shut out. However, there are always opportunity costs associated with any decision. The decision as to whether or not the company should set up in Chile has to be made based on the merits of that decision alone. Making decisions based on speculation and worst-case hypotheticals, in particular when those are opportunity costs, is poor decision-making practice. Thus, this rumor about Matsubara should not have any influence on the decision with respect to setting up in Chile. The decision is still that setting up in Chile is expected to have a positive NPV, and should be undertaken.…
But to take this absurd scenario at face value, 2% is a negative real return as Chilean inflation rates are in the 4.x range for 2015. This mandate would represent negative cash flow. That loss on investment must be included, because it is incremental to the decision, and is known. This cost would then have to be built into the analysis, and the recommendation might change. The recommendation is still a go, because the NPV is still positive, but it is just barely positive, given that the company is losing 2.5% or thereabouts as the difference between the inflation rate in Chile and the 2% return on those funds. If that pushes the discount rate up, it gets to 17.5%, versus an IRR of 17.75%, so the project is still profitable, but barely so.
3. This opportunity would not affect anything. I would not sell tin at a loss, so the offer to export tin means very little to me. Selling at 80% of purchase price is a loss of 20%, so basically I would be paying a 20% charge to get my money out of Chile.. That is more than the 2.5% hit I am taking to keep my money in Chile. While this may result in greater certainty with respect to the value of the profits, the cost is that the venture is no longer profitable. Moreover, the 15% discount rate is no longer sufficient, because the company is now exposed to commodity price risk, as it is impossible to hedge the price of tin five years out. The offer is just that, and I do not have to accept the offer. I would not accept an offer that wiped out my profits.
Thus, because this offer is worse than the one in #2, it would not affect anything. They are mutually exclusive offers, and I would take the best one, which is #2.
Soliciting funding for a company investment is normally an uphill task for the company. The ideal company must convince the investors that it can repay the money. For this reason, there is a necessity to determine the company's capital structure. Capital structure guides the company agitation on funding. In fact, through the capital structure, the company achieves debt capital, equity capital, and other hybrid securities like vendor financing. The commencing report will examine Microsoft Capital structure. The report will prove that Microsoft can achieve a coherent financial liberation if it pursues capital-funding mechanisms that are investment conscious.
Microsoft Capital Structure
Microsoft capital structure comprises of residual distribution model in practice. Berg Aspelund and Sorheim (2008, pp. 33) joins this analysis by arguing the residual distribution facilitates determination of estimates returns and investment. Microsoft assesses its opportunities assessed on the average for the next five years. In addition, the…
Berg, M.S., Aspelund, A., & Sorheim, R. (2008). The hybrid structures of international new ventures: A social capital approach and research agenda. The International Journal of Entrepreneurship and Innovation, 9(1), 33-42.
Bertomeu, J., Beyer, A., & Dye, R.A. (2011). Capital Structure Cost of Capital, and Voluntary Disclosures. The Accounting Review, 86(3), 857-886.
Porteous, B.T., & Tapadar, P. (2008). The Impact of Capital Structure on Economic Capital and Risk Adjusted Performance. ASTIN Bulletin, 38(1), 341-380.
Wang, S. (2010). An Application of Fuzzy Set Theory to the Weighted Average Cost of Capital and Capital Structure Decision. Technology and Investment, 01(04), 248-256.
This will help to set off the startup costs.
The initial production costs are realistic because of the suggestion that outsourcing will be used. The company is relying on an outsourcing expert who has written several books on the subject. The software development will also expand to an offshore location which potentially can cut cost even further. USuggest plans to use search engine linked online portals as a marketing tool and they are seeking a merger or acquisition with a large, established Internet company to further increase profits for their brand. Mergers can lead to the company becoming more efficient by utilizing economies of scale. Cost saving can also be recognized by combined marketing, advertising and by cutting down on the overlap of &D (Shukla and Gekara, 2010).
Even though this venture is in the startup stages, it definitely has the potential to grow into something much larger. The target…
Shukla, a., & Gekara, M. (2010). Effects of Multinational Mergers and Acquisitions on Shareholders' Wealth and Corporate Performance. IUP Journal of Accounting Research & Audit Practices, 9(1/2), 44-62.
Van Rooij, a. (2008). How R&D helped transform DSM. Research Technology Management, 51(1), 43-48.
Wenzel, E. (2011). Moving to the Cloud Isn't for Everyone: What to Consider First. PC World, 29(7), 32.
Thus, as their customer continued to grow, BS continued to collect additional revenues based on the number of users added to that company. In this "ongoing revenue is generated by additional users," (oberts 1998 p 11). This was one of the stronger strategies in this process. The second, a high dependence on consulting and implementation revenue, was a little more risky. Here, BS was relying on its customers to purchase ongoing services in order to keep the platform operating smoothly and to integrate most effectively into their current organizational set up. Yet, this was actually one of the most risky endeavors undertaken by BS. The research showed that once customers had used their system for two years, demand for consulting services dropped dramatically. Thus, unlike the additional user strategy, consulting services eventually ended up a dead end revenue stream every time. BS had been planning the implementation of SOFTAX 5.0,…
Roberts, Michael. (1998). Walnut Venture Associates (a): RBR Group investment memorandum. Harvard Business School.
The author of this report is asked to answer to several questions and specifications surrounding a business venture and how exactly it would and should be pulled off in an effective and well-performing manner. The form and function and "how" the business would be established is the first thing while the next is the funding sources that would be undertaken to get things going. The form or forms of intellectual property that would have to be enforced and protected as next and then the overall way in which the business will be created or acquired. How the sources and need for capital would change after five years of operation is the last thing to be discussed. While getting a business up and running requires a mass infusion of cash and/or borrowed money to get going, the business will eventually be lucrative.
As for how to establish…
IRS. (2014, February 28). Forms and Pubs. Internal Revenue Service. Retrieved February 28, 2014, from http://www.irs.gov
Nolo. (2014, March 1). Intellectual Property. Nolo.com. Retrieved March 1, 2014, from https://www.nolo.com/products/intellectual-property
Peterson, A. (2013, November 6). Netflix has won: Blockbuster is closing its last retail stores. Washington Post. Retrieved February 28, 2014, from http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/06/netflix-has-won-blockbuster-is-closing-their-last-retail-stores/
Another important issue to consider in the contraction of debt is represented by the impact of this debt on the company stakeholders -- employees, business partners, the public, and most importantly, the share holders. The primary scope of the economic agent is that of creating value for its stakeholders, but excessive debt could jeopardize this desire, especially since debt is money that has to be repaid and it as such reduces the future levels of profitability.
At the level of value creation, a crucial aspect to be analyzed is represented by the source of the debt to be contracted. On the one hand, there is the contraction of debt through loans, which are characterized by the fact that control and ownership of the company remains intact, but payments have to be regularly made; the payments are nevertheless tax deductible.
On the other hand, there is the contraction of…
Capital Budgeting for Guillermo Furniture
Guillermo Furniture has an uncertain road ahead, with several options that its owner can select from in an attempt to bring his company into the twenty-first century as a profitable and productive entity. Industry changes and changes in the regional economy have made it impossible for Guillermo to continue running his high-end hand-made furniture with the same laborious and highly skilled process while remaining competitive with more automated companies and those with wider and more efficient distribution networks. The options facing Guillermo and Guillermo Furniture are not ideal from the owner's perspective, but considering them in an objective light should allow him to select the best alternative for his company in the changing economic environment. The first alternative is that he could automate the manufacturing process, which would come at the cost of substantial capital but would allow him to remain in his…
El-Erian, M. (2012). The Global Economy: What the Next Three Years Will Look Like. Accessed 12 December 2012. http://www.huffingtonpost.com/mohamed-a-elerian/global-economy-next-three-years_b_1519613.html
Elliott, L. (2011). The economic forecast is simple: the next 10 years are going to be a drag. Accessed 12 December 2012. http://www.guardian.co.uk/business/2010/mar/01/drag-deficit-reduction-anaemic-growth
Profit Before tax
Profit before interest and tax
As you can see, this venture is projected to earn a profit in the first year. Furthermore, once the model for one metropolitan area is refined to the point that it is fit for duplication; other urban markets will be entered further enhancing the financial position as the industry further develops. The industry is positioned for rapid growth due to its necessity for developing sustainable operating practices. Clients using such products and services may also be entitled to…
The study also found that there is an inflexion point of IJV shared performance in industries that have initially large technology gaps. As emerging firms approach greater parity of technology use, closing the gap with their peers and the IJV partner, the greater the reliance and dependence on the IJV partner becomes. The two hypotheses of the study theorize that there is an inverted U-shaped curve of influence between IJV partners and nascent firms, meaning the greater the dominance of the IJV partner and depth of technology, the less likely an emerging firm will stay autonomous. The first hypothesis stated that a U-shaped curve of influence indicates both a negative and positive contribution to indigenous firm's innovation and autonomy. Maintaining an equilibrium of influence by industry mitigates the negative aspects of IJV influence while ensuring indigenous firms get just enough support without making them too dependent.
The second hypothesis is…
Li, J., & Zhou, C.. (2008). Dual-edged tools of trade: How international joint ventures help and hinder capability building of Chinese firms. Journal of World Business, 43(4), 463.
New Venture Opportunity
Delish Confections has been around since June, 2013. It is a newly established family-owned business in the heart of Gold Coast city, Queensland, Australia. Delish Confections is a craft bakery that promotes and sells a wide variety of breads, cookies, cakes, brownies, donuts, rolls, fillings, snacks, muffins, batters & coaters, spreads & smears, ice creams, pretzels, waffle cone mixes, carbonated soft drinks, energy drinks, and numerous dairy and non-dairy food items. Delish Confections is committed to provide the highest quality of baked food, confectionary items, and beverage products at very competitive prices. The company is currently operating in 11 cities in Queensland State and has employed 73 people at its stores, offices, and production units.
SWOT Analysis for Delish Confections
The biggest strength of Delish Confections is its manufacturing capabilities and integrated product range. With the help of advanced production plants and machineries, Delish…
Jenny, M., & Scammon, D.L. (2010). Principle-Based Stakeholder Marketing: Insights from Private Triple-Bottom-Line Firms, Journal of Public Policy & Marketing, 29 (1): 12-26.
Kotler, P., Brown, L., Burton, S., Deans, K., & Armstrong, G. (2010). Marketing, 8th Edition. U.S.: Prentice-Hall.
Lancaster, G., & Withey, F. (2007). Marketing Fundamentals, 2nd Edition. U.K: Butterworth-Heinemann.
Mu-hlbacher, H., Dahringer, L., & Leihs, H. (2006). International Marketing: a Global Perspective, 3rd Edition. London: Thomson Learning.
This may be a useful starting point for future discussions.
8. What do we know about management?
The management team appears to be competent and mature, with a large amount of collective experience in their respective fields. Sam Mortensen, founder and CEO for example hols a number nonprofit board positions. Dr. Steve Sherill, VP of Technology, has more than 25 years of software industry experience and comes from a CIO and VP position in Engineering. President Brian Carlson also previously held financial and IT positions, and VP of Sales and Marketing Brad Nelson comes from a sales management background. Finally, Jon Liberman, VP of Business Development, has experience in both start-up and established companies.
All members of the management team therefore bring a large amount of experience and maturity to the Q&E Auctions venture.
Key Diligence Items: (Key risks / questions to be answered)
A. Customers / Competition:
Additionally, as a result of the new program, the standard operating procedures of the company will need to be fundamentally altered. This cannot be done casually. A new employee handbook must be issued. The task of formal revision of company policies in writing will be accomplished by a committee headed by each department, which I will supervise. This must begin posthaste, as it will take an extensive period of time in terms of restructuring incentives, defining recruiting objectives, and putting into writing how the incentive structure will function. At some point, we may wish to consult with current employees for advice in fine-tuning the program, which will take time.
After these human capital policies and procedures are revised, I am confident that our company will be able to grow and thrive. Throughout the process I will solicit input from all department heads: this will be a truly collaborative endeavor.
Labor and Monopoly Capital
HAY BAVEMAN's book Labor and Monopoly Capital carries the tradition of Marxist schools. The author focuses on the labor process under the Fordism, arguing that how the work, under the discipline of scientific management, becomes disjointed, dull, and repetitive. According to him, the work is degraded. Like Marx, Braverman is a deterministic and looks into the question of how technological change in Fordism affected the attributes of work and the discrimination of working class.
The labor process under capitalism is one of the central themes of Braverman. Its main emphasis lies in providing a voice to the working-class movement. Taking his insights from Marx, Braverman is considered the latest follower that has accurately appreciated the profundity of Marx's work. Supporting his work from Marx himself, and drawing on his own experience as a trained craftsman, a socialist militant and journalist, and a manager of two publishing…
Harry Braverman, "Automation: Promise and Menace," The American Socialist, October, 1955, pp. 7-12.
Harry Braverman, "The World of Work," The American Socialist, June 1959, pp. 12-18.
Private-label securitization has basically ended, and Fannie and Freddie were positioned into conservatorship by their controller subsequent to working in a dangerous and unsteady way. The job currently is to figure out how best to restore a connection between homebuyers and capital markets in a manner that deals with the problems of the old arrangement (Bernanke, 2008).
One alternative that has been talked about is that of privatizing the GSE's and letting them contend in the marketplace as private mortgage insurers and securitizers. In order to get rid of the assumption of government backing and to arouse competition, some suggestions supporting privatization call for collapsing the corporation into less significant components prior to privatizing them. Privatization would resolve a number of troubles connected with the present GSE model. It would get rid of the disagreement amid private shareholders and public policy and probably reduce the total dangers as well (Bernanke,…
Bernanke, Ben S. (2008). The Future of Mortgage Finance in the United States. Retrieved November 13, 2010, from Federal Reserve Web site: http://www.federalreserve.gov/newsevents/speech/bernanke20081031a.htm
Housel, Morgan. (2010). Why the U.S. Can't Inflate Its Way Out of Debt. Retrieved November 13, 2010, from the Motley Fool Web site: http://www.fool.com/investing/general/2010/04/16/why-the-us-cant-inflate-its-way-out-of-debt.aspx
US Congress passes stimulus plan. (2009). Retrieved November 13, 2010, from BBC Web site: http://news.bbc.co.uk/2/hi/business/7889897.stm
Woodhill, Louis. (2010). You Can't Tax Your Way Out of a Debt Crisis. Retrieved November 13, 2010, from Real Clear Markets Web site: http://www.realclearmarkets.com/articles/2010/05/11/you_cant_tax_your_way_out_of_a_debt_crisis_98459.html
The financial planning process will reveal the key cost and revenue drivers at the clinic. Externally, we must product financial statements in order to secure financing. These statements will need to be professionally prepared in accordance with the prevailing accounting principles. The bank will need to see that our financial estimates are grounded in good research and south assumptions. Having these statements reduces our risk as well, since we have a better understanding of our cost structures and contribution margins.
Though tangential to our main mission, sustainability elements can add value to our operation, depending on how they are utilized. In the health care industry, environmental concerns are generally minimal. There appears to be little opportunity to profitably incorporate such concerns into our operation, as the market in Dubai is not known to be responsive to such initiatives. That said, will be need to undertake at least cursory…
Dubai World, a venture funded by the emirate of Dubai, announced that it would place a six-month "standstill" on $4 billion out of $26 billion of its outstanding debt. The move had dramatic repercussions for global financial markets, and the rulers of Dubai needed to evaluate the best strategy with respect to how to proceed following the announcement. The decision had major ramifications for Dubai as a nation-state.
Dubai's economic growth has been strong for several years, but unlike the wealth of neighboring Abu Dhabi, the growth in Dubai is not based on oil wealth. Dubai's wealth essentially comes from its ability to convince investors to put money into the country -- there is no genuine wealth in Dubai, it is all borrowed. This makes the issue of the Dubai World debt critical for the future of the emirate. The country's position as one of the Middle East's most open…
Portfolio theory is a venture advance that permits investors to approximate both the expected risks and returns, as calculated statistically, for their investment portfolios (Investment Portfolio Management and Portfolio Theory, 2011). This is a very good technique that those in the investment field use in order to get the most out of their investments. This technique can also be used in the human resources arena in order for a company to get the most return on their employees.
H professionals in today's business world act as a partners with line management in order to resolve vital issues and add optimistically to the organizations bottom line. This H-business unit partnership guarantees that H goals are in line with the companies' general plan. The position of the human part of the company and its strategic goals makes sure that the company sustains its competitive edge by dealing with key matters…
Frederickson, Valerie. (n.d.). Risk Management and the HR Executive. Retrieved from http://www.vfandco.com/resources/PDFs/Risk_Management.pdf
Investment Portfolio Management and Portfolio Theory. (2011). Retrieved from http://www.greekshares.com/index-6.php
Ropella, Patrick B. (2009). The competitive advantage.(Human Capital Management). Retreived
Entrepreneur-Why investor would give me capital to start a decorating den?
With the spiraling demand for housing, the demand for interior decoration market is also rising in tandem. Concern regarding making the home interiors beautiful and plush is high on the wish list of many home-buyers. Modern and aware customers who view popular channels on TV dedicated to interiors and subscribe to the magazines flooding the market are valuing the quality of interior decorating in an increasing manner than ever before. ising on this demand for interiors among the people is a great opportunity to take up the Franchise offer of Decorating Den. It is an investment in the future compared to other franchise offered in the market and a completely new way of life. (Opportunities in a New Economy - Message from the President)
Convincing the Venture Capitalist for guaranteed profitability:
By taking up the franchise, owners of Interiors…
"A Beautiful Business" Retrieved from http://www.decoratingden.com/Bbusiness.shtml Accessed on 17 February, 2005
"Interior Views: Sample Plan" Retrieved from http://www.paloalto.com/sampleplans/MPP6/enu/Live/InteriorViews-mpp_Live.pdf
Accessed on 17 February, 2005
"Is the Business for you" Retrieved from http://www.decoratingden.com/foryou.shtml Accessed on 17 February 2005
3 Squares Restaurant and Sustainability
The analysis on the 3 Square Restaurant shows a wide variation regarding their marketing potential as well as the challenges they encounter in the process. Critically looking at 3 Square Restaurant, the business has the biggest potential to do great because of the strategies that the top management has instituted (Dimitri, & Oberholtzer, 2009). The implementation of the market segmentation is what has catapulted it to where it is today as more emphasis is placed on allowing their customers enjoy quality products and services developed to suit their needs. Through the marketing strategy, the company is effective; they are engaging, evolving, efficient, evaluating and have a vision for all the stakeholders in the company and most importantly its customers
Strategic marketers recognize the fact that target customers in food service are homogenous. They are never alike. The audiences primarily differ on social affiliations, personal preferences,…
Santos Capital Budgeting and Financial Analysis
2a) Company Perspective
Working capital measures a company short-term financial health as well as a company's efficiency. To calculate a working capital ratio, the paper uses the following formula:
"Working Capital atio= Current Assets / Current Liabilities"
In other words, the working capital ratio measures a liquidity capability of a company that measures whether a company has enough working capital to settle its short-term liability. A working capital below one indicates a negative working capital revealing that a company will face challenges in settling its short-term liability. On the other a working capital of 1.2 and 2.0 reveals that a company has enough liquidity to settle its short liability. However, working capital above 2 shows that a company is not embarking on an investing policy.
The paper uses the following financial tools to measure the working capital efficiency of Santos Company:
Working Capital atio…
Open University (2015). The financial markets context. United Kingdom.
Santos (2014). Santos Annual Returns. Australia.
Morning Star (2015). Rio Tinto plc (RIO). USA.
Malkiel, B.G. (2003). The Efficient Market Hypothesis and Its Critics. Princeton University
funding for entrepreneurs seeking seed capital to actualize their business ideas. The said funding sources in this case include but they are not limited to angel investors, bank loans, venture capitalist, friends and family, etc. In this text, I discuss angel investing. In so doing, I will largely concern myself with the pros and cons of the same.
A few years ago, James Barnham turned down an offer from a group of angel investors to fund the launch of a device he had invented. At the time, Branham was seeking a total of £150, 000 from investors in a reality TV program, Dragon's Den. Barnham according to Singh (2009) terms his rejection of the offer the best decision in his life. The investors (dragons) had sought a significant stake in the venture in exchange for the seed capital. The term Dragon (in relation to the TV program) according to ees-Mogg…
Cobb, W.R. & Johnson, M.L. (2012). Business Alchemy: Turning Ideas into Gold. Bloomington, IN: AuthorHouse.
Kaplan, J.M. & Warren, A.C. (2009). Patterns of Entrepreneurship Management (3rd ed.). Hoboken, NJ: John Wiley & Sons.
NovaFlo. (2007, Nov 6). Dragon's Den Nova-Flo Pitch [Video file]. Retrieved from http://www.youtube.com/watch?v=xu0QifxOGvs
Rees-Mogg, M. (2008). Dragons or Angels? An Unofficial Guide to Dragon's Den and Business Investment. Richmond: Crimson Publishing.
Executive eport on Financing the Acquisition
Financing of an acquisition is one of the challenging aspects when it comes to a company with some few assets unlike the one to be acquired. Paying in cash would not be a viable option putting into consideration the lack of capital involving JC Penney. Its market valuation is only one-third of the value of Kohl, which stands at $6.9 billion. Therefore, the use of shares is inappropriate because enough capital to pay for the acquisition cannot be obtained. Financing the acquisition requires significant cooperation between all the partners in the deal because JC Penney does not have the resources needed to complete the acquisition immediately. Some risks are also involved as all the equity belonging to JC Penney will have to go into the deal. In this case, the cash flow belonging to JC Penney would be used as the collateral in the…
Bates, T. W., Neyland, J. B., & Wang, Y. (2016). Financing Acquisitions with Earnouts.
Elsas, R., Flannery, M. J., & Garfinkel, J. A. (2014). Financing major investments: information about capital structure decisions. Review of Finance, 18(4), 1341-1386.
Fischer, M. (2017). The source of financing for mergers and acquisitions. The Quarterly Review of Economics and Finance.
The company has only just entered the Boston market and has not developed other markets, but is the first-mover in North America. Strategically, ZipCar could benefit significantly from rolling out into other cities before other competition emerges.
It is believed that in another six months, more financing will be required to facilitate further expansion. Filling in the Boston market is expected to utilize all of the $1 million remaining after the debt is paid off. Venture capitalists are believed to want to see a couple of things from ZipCar in order to make the successive financing rounds smoother. The first is that the company will need to demonstrate that the current leadership team is capable of leading this growth. At present, there is concern that the team's lack of experience is going to inhibit its ability to grow. However, when professional management was brought in before, it was not successful.…
In addition, venture capital boost the confidence of other investors and can eventually have a positive impact on the quality of life that people live as it relates to both education and healthcare. However, the research indicates that venture capitalists face many challenges in attempting to assists businesses in developing countries. These challenges often have the do with the lack of government structure and laws that determine how businesses are to operate.
Aylware, a. (1998). Trends in venture capital finance in developing countries. (36). Washington, DC: International Finance Corporation.
Berger, K. (2004, June). The Power of Venture Capital: Venture Capital Is Essential to Enable Entrepreneurs to Expand or Start New Ventures. But it Is isky and Africa Comes Top of the Table in Terms of High isks. However, Things May Be Changing as Kasimir Berger eports. African Business 37.
Hamori, B. (1999). Dog strategies in the transition economies. (Eastern…
Aylware, a. (1998). Trends in venture capital finance in developing countries. (36). Washington, DC: International Finance Corporation.
Berger, K. (2004, June). The Power of Venture Capital: Venture Capital Is Essential to Enable Entrepreneurs to Expand or Start New Ventures. But it Is Risky and Africa Comes Top of the Table in Terms of High Risks. However, Things May Be Changing as Kasimir Berger Reports. African Business 37.
Hamori, B. (1999). Dog strategies in the transition economies. (Eastern Europe). Business Horizons, 42,
Jackson, T. (2004). Management and Change in Africa: A Cross-Cultural Perspective. New York: Routledge.
8-15.6-15.6-15.5-15.6-15.6-15.8-16.1 Subtotal pre-1996 154 15.6-15.5-15.5-15.5-15.5-15.5-15.5-15.9 adapted from PriceWatersHouseCoopers 2008)
1996 Vintage Funds Onwards
No of funds to ec
Venture 72 -1.6 -0.6 -1.9 -2.4-8.7-29.7-42.0-86.7 Small MBO* 16 7.3-3.2-1.9-0.3-3.2-1.3-2.6 -14.2 Mid MBO 73-14.9-13.2-9.3-5.9-4.3-3.6-8.0-17.6 Large MBO 1-23.7-21.0-18.0-13.9-14.3-16.5-30.6-25.2 Subtotal 1996 onwards 182 18.9-16.4-13.2-9.4-9.7-1-1.7-19.8-25.9 Grand total all funds
336 17.3-16.0-14.4-13.0-13.6-14.6-16.2-16.4 adapted from PriceWatersHouseCoopers 2008)
Subcategories (All Vintages)
No of funds to ec
UK 252 14.6-14.4-14.0-13.6-14.1-14.5-15.4-16.2 Non-UK 84-20.2-1-7.9-14.9-11.8-12.6-15.1-18.7-17.5 Pan-European 77-21.6-19.7-17.4-14.0-14.9-16.9-20.9-20.4 Technology 95-0.1-1.0-0.1-0.9-7.4-10.7-12.1-12.8 Non-Technology 241 18.7-17.3-15.7-14.2-14.5-15.3-17.0-17.3
Includes development capital adapted from PriceWatersHouseCoopers 2008)
No of to ec
No of funds to ec
1980-84-13 9.5-9.5-9.5-9.5-9.5-9.5-9.5-9.5 1985-89-68-13.8-13.8-13.8-13.8-13.8-13.8-13.8-1-3.8 1990 13-11.3-11.3-11.1-11.1-11.1-11.6-11.5-11.8 1991 14-23.4-23.4-23.4-23.3-23.3-23.3-23.3-23.7 1992 7-20.3-20.3-20.3-20.3-20.2-20.1-20.0-19.7 1993 10-15.3-15.3-14.8-14.0-14.6-14.6-14.6-16.0 1994 20-34.3-34.3-34.4-34.4-34.3-34.3-34.9-36.9 1995 9-23.1-22.2-21.9-21.9-21.8-22.8-25.7-32.1 1996 15-18.7-18.7-18.6-1-8.5-19.0-20.1-22.0-26.3 1997 25-15.6-14.7-14.9-14.3-14.3-13.7-17.6 n/a 1998 16-12.5-12.2-10.8-10.6-9.3-6.3 n/a n/a 1999 28-15.8-8.8-6.2-1.5 -2.0 n/a n/a n/a 2000 29-16.7-14.9-8.7-4.8 n/a n/a n/a / a 2001 29-29. 1-28.3-23.4 n/a n/a n/a n/a n/a 2002 20-32. 1-23.4* 22.2* n/a n/a n/a n/a n/a Total 336…
Drawing on its long experience of successfully bringing its unique skills to new markets, Apax Partners opened offices in Stockholm in 2004, Hong Kong in 2005, and Mumbai in 2006 (Apax Partners Story 2008).
One of Apax's success stories, Yell and Computacenter, a telephone directories group "had a strong run after joining public markets.." New Look, Similarly, a fashion chain, in a similar sense, projected to be sold or refloated at a huge profit this year,
company, industrial and financial analysis of Thomas Venture Capital. It has 4 sources.
The UK outbound travel industry is highly competitive, with several large players dominating the market and many smaller firms catering to specialist requirements. The industry has been through a trying period in recent times, with the terrorist attacks of 2001 badly hurting air travel, and with budget airlines also cutting into their business.
This report looks at the feasibility of an equity investment in Contiki Holdings, as it expands into the outbound tour operating business, by Thomas Venture Capital. The report is structured into sections, each of which examines a different aspect of the decision. The first section provides a brief historical overview of the business including its evolution to its current state. The second section provides a review of the market as a whole, concentrating on statistical data regarding volumes and spending of travelers from the…
1) "Australian Tourist Commission 2003/04 United Kingdom Market Profile," June 12, 2003, Nov 19. 2003, http://atc.australia.com/cms/pdf/United%20Kingdom%20Market%20Profile%20v2%20250803.pdf
2) "Current Developments in the UK Outbound Travel Industry," IRN Research, Dec 2002
3) Association of British Travel Agents Website, Nov 18, 2003, http://www.abta.co.uk
4) MyTravel plc annual report 2002
The Internet began to rise in the early part of the decade, but the major landmark was the launch of the Netscape Navigator, the pioneering Internet browser. This, combined with significant infrastructure investments on the part of telecommunications companies, helped to drive the rapid growth of the Internet through the 1990s. Already in the mid1990s, companies in the Valley and beyond were beginning to exploit the commercial value of the Internet. By 1995, future giants such as eBay and Amazon had been established.
The early successes of these and other pioneering Internet firms hinted at the commercial viability of the Internet. Investors noted that the opportunity to buy a future global giant at IPO pricing, or near to it, was a rare opportunity. This fueled demand for stock in Internet companies. Although the business models for most Internet companies were unproven, investors were not willing to wait, fearing that it…
The market structure of Turkey is quite different from that of the UK. The cultural composition of Turkey is not a guarantee of making proportional sales. The reasons for the low performance of the company's product could as well reverberate in Turkey. If the UK market that the company is accustomed to has failed to yield expected returns, the viability of the company's product in Turkey is doubtful. However, considering the expectation of government grants that will offset the company's tax liability; the venture assumes a would-be profit generator. The company cannot bank on this tax relief as a basis to carry on with the proposed relocation to Turkey. The reason for that being that the amount accruable from the tax relief is on a portion of the entire expenditure of the company. The long run effect of this is still profitable to the company.
Based on the outlay of…
Adekola, a.; Korsakiene, R.; Tvaronaviciene, M. 2008. Approach to innovative activities by Lithuanian companies in the current conditions of development, Technological and Economic Development of Economy 14(4): 595-612. doi:10.3846/1392-8619.2008.14.595-611
Balkyte, a.; Tvaronaviciene, M. 2010. Perception of competitiveness in the context of sustainable development: facets of "Sustainable competitiveness," Journal of Business Economics and Management 11(2): 341-365. doi:10.3846/jbem.2010.17
Black, F (1976). "The Dividend Puzzle,"Journal of Portfolio Management 2, 5-8.
Carland, Jim, and JoAnn Carland (1998). Small Business Management: Tools for Success, Second Edition, Houston, TX, Dame Publications, Inc. p. 444.
Companies and Diversification
Akpinar, O, and Yigit, I. (2016). The Relationship Between Diversification Strategy and Firm Performance in Developed and Emerging Economy Contexts: Evidence from Turkey, Italy And the Netherlands. Journal of Economic and Social Development, 3(2), 78-86.
This research encompassed a close look at data from 166 firms in the Netherlands, 265 firms in Italy, and 128 firms in Turkey (using data from 2007-2011). The point of the research was to explore the difference between various types of diversification and production performance in those three nations. Akpinar (professor, Kocaseli University in Kocaseli Turkey), and Yigit (business faculty member at Marmara University in Turkey) explain that "Related Diversification" is market expansion into new areas, and "Unrelated Diversification" is expansion into a new market "having no relation with the existing one" (Akpinar, et al., 2016).
The hypothesis used by the authors: there would be a positive relationship between "performance and related…
Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?
There are several reasons which explain why the Amazon Company has a shorter cash cycle than its competitor Barnes & Noble. First and foremost, Amazon is a much bigger company than Barnes & Noble both in terms of income and in the number of products that it sells. hile Barnes & Noble sells some things besides book and ebooks, this is their primary product. Amazon sells everything including books, although this is a very small portion of their income. Another reason for this is that Amazon is doing better financially than Barnes & Noble. The ebook trend has bitten into Barnes & Noble's income, which they tried to combat by creating their own ereader, the Nook but this was far less successful than the Amazon ereader,…
Ross, S., Westerfield, R. & Jordan, B. (2012). Fundamentals of Corporate Finance. 10th ed.
International Equity Markets
Advantages and disadvantages of cross listing on stock exchanges
When a company lists its stock exchange on many stock exchanges in different countries, it is referred to as cross listing. It entails exchanging in more than one country. However, a company can list its stocks on two stock exchanges in the same country. The administration is likely to be widened besides the generation of great pool of possible investors. In most cases, companies employ the common form of cross listing whereby they launch a primary listing in the country of origin before initiating a secondary listing in a foreign country. This happens when a business is pursuing to go global. For instance, an Australian firm expanding in the U.S. And seeks to reflect this in the best way (Dobbs & Goedhart, 2010).
The major reason of cross listing is to avail stock to many people across the…
Rubery, S. (2007). Corporates spread their wings on international exchanges. Corporate Finance, London, U.K.
McDowall, L. (2010). Publicly listing a company - the advantages and disadvantages. Retrieved from http://ezinearticles.com/?Publicly-Listing-A-Company-The-Advantages-And-Disadvantages&id=835976
Dobbs, R. & Goedhart, M.H. (2010). Why cross-listing shares doesn't create value. Retrieved from http://www.bnet.com/2403-13239_23-255550.html
Youxing, L. (2009). Comparison of the legal institutions of enterprise financing in China and the United States. Retrieved from http://www.indiana.edu/~rccpb/uschinacooperation/papers/P10%20Li%20Youxing.pdf
Barnes and Noble Strategic Analysis
In evaluating a business strategic positioning, the research approach relates towards Barnes & Nobles' seven main areas of focus relating towards the company's annual report, investor relations summary notices, and corporate governance. By reviewing a variety of available public company's governance, proper research can start to measure strategic approaches effectively. In doing so, the organizational vision, mission, and value statements are from the Barnes & Noble Governance initiative that influences all other strategies, either internally or in the external environment.
The intention behind every organization is to have a successful manifestation of plans and objectives that will elicit equitable control methods and strategies in the company. Barnes & Noble is a multifaceted company that incorporate a number of strategies and planned options to carry out its business entities in the global market. Marketing options involved are rudimentary to the tastes and preferences of the social…
Barnes & Noble (2012) Corporate Governance, retrieved from http://www.barnesandnobleinc.com/for_investors/for_investors.html
Barnes & Noble (2012). Retrieved from http://www.barnesandnobleinc.com/jobs/core_values/our_core_values.html
Barnes & Noble Annual Report, (2011). Retrieved from http://www.barnesandnobleinc.com/for_investors/annual_reports/2011_bn_annual_report.pdf
Barney, J.B. (2007). Gaining and Sustaining Competitive Advantage (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
An inevitable concern in expanding any business is to ensure that the strengths that initially enabled the business to flourish are maintained while the organization exploits new areas of growth. A new position of location coordinator would enable someone to troubleshoot issues with other location managers while the two of us as CEO and CIO work out the details of franchising new operations or using venture capital to open up more company-owned shops. The location coordinator would handle any issues which arise based upon geographic and regional issues on a case-by-case basis but would still have a general managerial level position and authority.
Of course, the idea of delegating is an important one for any growing organization. No one can do everything and currently the organization’s main leadership responsibilities are divided between ourselves. On the other hand, however, there is great concern in adding to an already bloated bureaucracy for…
Global Fighter Jets Marketing Plan
Global Fighter Jets is poised to provide customers with high-edge military aircraft specifically to combat fighter jet. Our marketing efforts will be geared towards customer's reassurance that we are the first when searching for military fighter jet such as F-35 fighter in Israel. Our key to success will center on the marketing strategy that we will implement, and our marketing strategy is the marketing mix to expand the relationship with existing customers.
Global Fighter Jets will use 4Ps as marketing mix, which include Product, Price, Promotion, and Place. Several reasons make the paper to choose 4Ps as marketing strategy.
Product: A product relates to the specifications of goods as related to the satisfaction of customers. The company chooses product as marketing mix to provide combination of quality, brand name and features to launch the product into the market.
Price: The reason…
Business Monitor International Ltd. (2011). Market Structure & Defence Industry. Venezuela Defence & Security Report.
Bruce, M. Daly, L. & Kahn, K.B. (2007). Delineating Design Factors that Influence the Global Product Launch Process. The Journal Product Innovation Management. 24:456 -- 470.
Chen, M.K. Wang, S.C. & Chiou, C.(2009). Global Logistics Management for the E-Business Policy for Manufacturing. International Journal of Electronic Business Management. 7(2): 86-97.
Cook, N. (1996). Military upgrade market attracting too many players. Interavia Business Technology. 51(602).
Firms with what organisational patterns are more likely to acquire existing firms? In what stage of internationalisation is acquisition more likely? Such research should not assume that such decisions are always rational. It may be that irrational factors are important at times. For example, it might be that the rush to acquire businesses in Europe prior to 1992 and to acquire companies in Asia in the mid-1990s reflected a bandwagon effect with firms developing strategies to legitimise their investments after the decision has been made (McDougall, et al., 2004). Research might also give attention to a broader range of entry modes beyond exporting, licensing and FDI. Strategic alliances with local or other foreign firms may involve no transfer of funds. Alliances are another entry mode option which deliver similar strategic advantages to joint ventures but have received little attention in the literature beyond those firms whose home country is either…
Aspelund, a., and O. Moen 2001. "A Generation Perspective on Small Firms Internationalization -- From Traditional Exporters and Flexible Specialists to Born Globals," in Advances in International Marketing: Reassessing the Internationalization of the Firm, Vol. 11. Eds C.N. Axinn and P. Matthyssens. Amsterdam: Elsevier Science, JAI Press, 197-226.
Bell, J., Crick, D. And Young, S. 2004. Small Firm Internationalization and Business Strategy: An Exploratory Study of Knowledge-Intensive and Traditional Manufacturing Firms in the UK. International Small Business Journal. 22(1):23-56.
Cavusgil, S. Tamer, Knight, Gary and Riesenberger, John R. 2008. International Business: Strategy, Management, and the New Realities, New Jersey: Pearson Prentice Hall. ISBN: 0137128339. Chapter 3.
Christensen, P.R. 1997. "The Small and Medium Sized Exporters' Squeeze: Empirical Evidence and Model Reflections," Entrepreneurship and Regional Development 3, 49-65.
Some hospitals create a "contingency" budget, which can be offset by a few of these patients.
The percentage of non-paying patients can vary a good deal, particularly in a city- or county-owned hospital. This number may not vary, and typically in a budget the hospital CEO and/or CFO negotiates with the governmental bodies for regular subsidies to cover.
The billing cycles can be difficult to predict, particularly for Medicare and Medicaid patients, where there are famous irregular delays on payment. It is possible, as noted above, to go to outside banks or other bodies to get a/R funding to cover these contingencies
Particularly in older hospitals, the amount in the depreciation account may not be enough to cover unforeseen expenses, such as asbestos removal or deterioration. Hospitals can address this by auditing their depreciation accounts and making a better assessment of what might be needed in coming budgets.
MedCath. "MedCath Corporation." 2006. medcath.com. 15 November 2007 www.medcath.com.
Mullins, D.W. "Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital." Harvard Business Review (1980): n.p.
Schneider, EC, Zaslavsky, AM and Epstein, AM. "Use of High-Cost Operative Procedures by Medicare Beneficiaries Enrolled in for-Profit and Not-for-Profit Health Plans." NEJM (2004): 143-150.
Shah, BR, Glickman, SW, Lian, L, Gibler, WB, Ohman, EM, Pollack, CV, Roe, MT and Peterson, ED. "The Impact of for-Profit Hospital Status on the Care and Outcomes of Patients With Non-ST-Segment Elevation Myocardial Infarction." JACC (2007): 1462-1468.
Question 1- Valuation - Valuation Using Comparable information- Valuation is a process of estimating worth of an asset. However, when valuing a company or organization there is no "one" correct way to accomplish the task. Each organization may have a different way of reporting historical information, and event financial statements prepared with GAAP show assets based on a more historical, rather than current, paradigm. Generally speaking, though, the valuation of financial assets is done using one of more of three models:
Absolute values -- These models focus on the present value of an asset's expected future cash flows -- using multiperiod models like discounted cash flow or single-period models like the Gordon model. Absolute values take into account objective issues and are quantitatively based, but are valuable as only a partial picture into the actual value of the asset and may not be transferable from one industry to the…
A Basic Guide to Bank-Term Loans. (2012). Entrepreneur. Retrieved from: http://www.entrepreneur.com/article/52728
Chemmanur, T., et al. (2011). How Does Venture Capital Financing Improve Effeciency? Review of Financial Studies. 24 (12): 4037-90.
Edvisson, L., et al. (1997). Intellectual Capital: Realizing Your Company's True Value by Finding Its Hidden Brainpower. New York: Harper Collins.
Fernandez, P. (2002). Valuation Methods and Shareholder Value Creation. London, UK: Elsevier Publications.