I. Statement of Financial Problem Should Continental Carriers‚ Inc. use debt or equity to finance the acquisition of Midland Freight in 1988‚ either by selling $50 million in bonds at a 10% interest rate to a California insurance company with a maturity of 15 years‚ or by issuing 3 million in common stock at $17.75 per share with a dividend rate of $1.50 per share? II. Financial Framework The outcomes of various financial alternatives can be examined through an EPS-EBIT analysis‚ where EPS
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Company Overview Continental Carriers is a general commodity motor carrier and has been since 1952‚ and they recently experienced successful growth since Mr. Evans focused on improving service‚ as well as an extensive marketing effort to boost their revenues in their already existing routes. He also implemented a way to reduce costs through computerization of operations as well as an improvement in terminal facilities to improve the company’s structure. This has since made CCI become a much larger
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I. CASE CONTEXT Imagine a company where employees hate the moment when they wake up because they know that they’re going to have to go to work. Once at work‚ these employees‚ who even consider maximizing their sick leave just to have an excuse not to be there‚ are all day with disgruntled customers complaining about the lousy service‚ the late planes and lost baggage. When the saving grace of break time finally arrives‚ these employees rush out and exert the utmost effort to pretend not
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hinder it in achieving its organizational goals? Continental Airlines utilizes a divisional structure relative to the management of its various entities. This structural design is due to the complex nature of the aviation industry as well as the autonomy required in operating a twenty-four hour a day‚ seven day per week worldwide business. In my opinion‚ the structural design of this organization with the exception of Continental Express and Continental Micronesia can really not be structured in any
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Continental Airlines Storytelling Workshops Definition Development of line managers’ ability to cast corporate strategy as a story boosts emotional engagement of managers and staff. Company Profiled Industry: Airlines FY2005 Sales: US$11.2 Billion Headquarters: Houston‚ Tex. Applicability This practice may be of interest if any of the following are true: Our internal messaging is bland or fails to engage our employees. Our managers are uncomfortable or ineffective in appealing to employees’ emotional
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Information technology is an emerging form of management and operating technique that is vital to many organizations and institutions. The purpose of information technology and the management of its systems were implemented as a primary task of supporting decision makers with the help of proficient data bases and storage capabilities. Thus‚ Information Systems are often looked upon as efficient and essential in the commercial world‚ especially within the United States. However‚ a great number
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Association DOI: 10.2308/iace.2011.26.1.181 A Case Study on Cost Estimation and Profitability Analysis at Continental Airlines Francisco J. Román ABSTRACT: This case exposes students to the application of regression analyses to be used as a tool pursuant to understanding cost behavior and forecasting future costs using publicly available data from Continental Airlines. Specifically‚ the case focuses on the harsh financial situation faced by Continental as a result of the recent financial crisis and
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A Case Study on Cost Estimation and Profitability Analysis at Continental Airlines Francisco J. Román Introduction In 2008‚ the senior management team at Continental Airlines‚ commanded by Lawrence Kellner‚ the Chairman and Chief Executive Officer‚ convened a special meeting to discuss the firm’s latest quarterly financial results. A bleak situation lay before them. Continental had incurred an operating loss of $71 million dollars—its second consecutive quarterly earnings decline that year
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CASE STUDY: FLETCHER JONES AND CONTINENTAL AIRLINES MANAGERIAL LEADERSHIP CONTENTS INTRODUCTION 3 SYNOPSIS 3 THEORY OF THE BUSINESS 4 COMPETING VALUES FRAMEWORK 5 4 + 2 FORMULA 7 THE FIVE PRACTICES OF EXEMPLARY LEADERSHIP 10 CONCLUSION 12 REFERENCES 14 APPENDIXES 15 Appendix 1 – Theory of the Business 15 Appendix 2 – Competing Values Framework 16 Appendix 3 - 4 + 2 Model 17 Appendix
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Continental Airlines: Outsourcing IT to Support Business Transformation Prepared by Neils Christensen and Keri Pearlson As the Texas sun began to set‚ Janet Wejman‚ the Chief Information Officer for Continental Airlines looked out the window of her Houston-based office and considered what her next move should be. It was now November 1996 and while she had only been with the company for a few months‚ she faced a dilemma relating to the airline’s information technology outsourcing agreement with
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