• Do you have any suggestion for the firm/industry? (What will you do if you were the decision maker…
The Bauer industries’, NPV from research was found to be 57.271771 for revenues and expenses. At 10% higher the companies NPV for revenue and expenses would be 93.99816. At 10% lower the NPV would be 20.54526. With the growth at 2% the NPV would be 72.46336, and by using 5% the NPV would be 94.27738. This suggests that the company could carry out all future plans of manufacturing lightweight trucks. The Bauer company could use the 12% cost of capital and they could survive any problems that they may foresee, because there seems to be a risk factor in place to allow them to collect on any loses.…
After these analyses based on the data provided, the project held by Road King Trucks should accept. There are some reasons to hold this opinion. First, we look at the NPV, which is Net Present Value, is positive of about $784,246,998.21. Internal Rate of Return is 13.27%, which is far more than the cost of capital. This figure shows that the project turns to be very profitable. Some questions should still be paid attention to, like the difference between the forecasted average inflation rate and real world inflation rate, which engine has a lower returning rate, and the change and establishing of related policies. Think that he who laughs last laughs best.…
The Warehouse Facility Consolidation project is aim to improve the NH’s warehouse facilities and can save the company’s operating costs as well as increase the shipping speed. This project is in retail division with an NPV of 2.29, an IRR of 13.56%, and a payback period of 8.23 years and a payback index of 0.31. Also, this project was considered as a medium risk project with 9.25% discount rate. Expansion of Mail-order Catalog Business to Asia is a retail division project, it is considering expanding its mail-order to the Asian market. Although there two possibilities that might happen, succeed or fail, it viewed as a low risk project with very low lifetime project costs which is only 2.73 million. It had an IRR of 19.77%, a discount rate of 8.46%, and a payback period is more than 10 years and the profitability index of this project is 2.85. I choose this project is because the Asian market is a very big market, since the project is low risk and the cost of this project is very low, we think it is worth to try, because if this project is succeed, the company will earn more profit. The last project we selected for this year is Retail Store Expansion in Northeast. The NPV of this project is 5.34 and it had an IRR of 37.45%, a discount rate of 10.04% and a payback period is 5.33 years. We suggested…
The company will establish itself in the market by strong marketing techniques in print and radio, as well as through sponsoring local events, and through word of mouth. Hosting events with other local events will be the main way of AutoRama getting its name out into the public. Although…
Fruity Frozen is located at a rented shop in Renton. We are renting this shop for $16,800 per year. Our contract terms with them are for 2 years. Thesettingfor this place is like a downtown area where there are lots of people and nearby is the mall where people will gather to shop and can get a quick snack close by. This location provides us with the advantage of getting regular customers because there are other small shops around. They are a lot of people that comes around by the mall on weekends, so we would get more customers in our shop during those days. There is no frozen yogurt shop around this area but there are many frozen yogurt shop located in Renton. So we do have competition but since we are far away from them, we are able to develop our own image and uniqueness for our shop in this specific location. Even though our competitors have regular customers already, we can bring customers into our shop because of our location. They will be able to just drop by our shop because they are going to the other shops nearby. This is a place for good quality products; this will give Fruity Frozen the image of having good product. Also this place is known through most people so Fruity Frozen would have a chance of being famous. This location does have a lot of car driving by because we are located in a crowed area, we would get customers especially during the busy time. That is when workers are leaving from…
This business falls into the tertiary sector which is growing faster than primary or secondary as many companies decide to provide service because it brings more profit than manufacturing. People pay more money for ready goods and services than they do for raw materials. At the moment many people haven't got a job which helps to me to chose more options of quality staff and wages. Tertiary sector is growing fast and took over most of the industry. Primary and Secondary sectors not growing and not expanding as need of it isn't big.…
The company business model is an automotive detail shop that prides itself by servicing customers conveniently. This is a competitive business where this company has an edge because the technicians provide the service at the customers’ home or work. This eliminates the hassle of dropping off a car and picking it up later. The technicians are skilled artisans who hold a minimum of five years experience in the detailing business. They require little to no supervision. The technicians are able to provide these auto detail services from a stocked truck carrying everything needed to handle concentrated requests at the customers’ door during a set appointment time. Laptops with top-of-the-line telecommunication technology is provided to the technicians enabling teaming with each other and other available resources, so that any special requests a customer may have can be accomplished. The CEO (owner and founder) brings 10 years of management experience in the auto detail business. This founder understands the top quality products needed and already has a network of merchants where the lowest pricing is available.…
After I joined my Present Company in early 2007, I was primarily looking after construction Industry customers viz. Civil Contractors, M&E Service Contractors, Fabricators etc. but this is proving to be not enough to attain growth in my territory as company had expected as there weren’t too many Private projects ongoing. Due to large number of government Institutions and installations present in my territory, I discussed a strategy with my management to penetrate into the government sector segment and devote my full time for 2-3 months to this and see what kind of business opportunities exist for our company in my territory. Also with past experience our company had in other parts of India, this segment proved to have given a good chunk of business of our annual turnover.…
Problem Statement: Selection of set of services, products and distribution model in order to achieve operational break even quickly.…
rtment of Business Administration Daffodil International University Submitted by Group name: light of moon Section: B Name ID. Roni Kumar Ghosh 112-11-2085 Md .Mashiur Rahman 112-11-2086 Badhon Sarker 112-11-2104 Md.Arshadul Haque 112-11-2110 Date of Submission: 04/07/13…
The market region is Mavlandia. This region is divided into 3 parts, but our operation is restricted to two regions only. Region 1 is a larger area with more number of people, and 40% of the people are relatively affluent and is open to new idea where as Region 2 is a smaller area with comparatively less number of people. In this region 20% of the population is relatively affluent and is open to new ideas.…
The proposed business is considered feasible due to the growing number of motor vehicle in the locality. The rising prices for motor accessories especially tires and tubes, will lead to the profitability of the proposed business because motor vehicle owners will hesitate to buy new replacements for their tires and tables, instead they will have it repaired to a…
Nowadays there are a lot of opportunities to start a business. However, the most challenging part is choosing a target sector. After a profound research of the market some potential segments for entry have been chosen by the members of our group. One of them is chemical industry where potential consumer demand is very high. Moreover, the demand is mostly price inelastic and rising with the population growth. So, this is beneficial segment for entry. The best start is to enter the market with huge potential, such as Almaty city. Obviously, there are a lot of traditional car wash stations in Almaty, and it would be difficult to start a totally new type of car wash business in such a highly competitive market. After the analysis we have found out that car wash industry in Almaty is still underdeveloped and has high potential to make profit. It is quite new area of car wash and is trying to compete with automatic and traditional car washes by offering convenient service for its customers. Rather than relying on roadside promotions or natural traffic patterns to drive car wash business, our business can create its own revenue opportunities by traveling to meet the customer. So there will be only one office located in Almaty, however the service will be provided to customers in places they want.…
Submitted to the AMITY UNIVERSITY NOIDA, UTTAR PRADESH is a record of an original work done by me under the guidance of Mrs. Aditi Batheja Faculty Member and this project work is submitted in the partial fulfilment of the requirements for the award of the degree of Bachelor Of Business Administration . The results embodied in this thesis have not been submitted to any other University or Institute for the award of any degree or diploma.…