Business Kodak and Fujifilm Essay Example | Topics and Well Written Essays - 1500 words - 10

Business Kodak and Fujifilm - Essay ExampleAccording to the study in 1976, the conjunction had 90% market share in USA. But during the late 1990s the company started to struggle financially as the sales of photographic film declined. After that the company was able to earn in 2007 by selling digital cameras. In January 2012, Kodak filed for protection against in the District Court of United States. Kodak had sold many of its wrinkle and patents to various companies. Fujifilm Holdings Corporation which is primarily known as Fujifilm and it is a Japanese company specialized in imaging and photography. It has its headquarter in Tokyo, Japan. The core businesses of Fujifilm are production, sale and servicing of alter film, development, digital cameras, color paper, equipments for photo finishing, equipments for graphic arts, equipments for medical imaging, printers, optical devices and flat panel displays. Fujifilm was founded in 1934 as a manufacturer of photographic film. It has ex panded to be a leader in various fields of business. During the 1940s Fuji photo entered into the market segment of lenses, optical glasses and equipments. This essay declares that in 1962, the company has launched Fuji Xerox Co. Ltd along with another UK based company Rank Xerox. In the 21st century, with the rapid pace of digital technology in the photography segment the company had transformed its business structures in to digital technology. Although the company was founded many years later than Eastman Kodak Company but Fujifilm was able to transform its business very quickly from film to digital technology. The diversification strategy of Fujifilm was also successful while Kodak failed on that.

Halifax Essay Example | Topics and Well Written Essays - 250 words

Halifax - Essay ExampleA Halifax public garden is a public center that does not wedge any fee at the gate. This facility does not have any website, but the municipality lists it as one of the areas for diversion. Clam Harbour Beach Provincial leafy vegetable found in Halifax, provide public access to the beach. Public users are not charged to access this park. Whereas the park has website on its own, it remains listed in www.novascotiaparks.ca website. there are various forests clubs such as Blue Forest, and forests in Nova Scotia. These forests are only free in some seasons, but they levy varying inwardness of fees. These forests have not websites.Swimming is one of the activities of Nova Scotia, which can be done at the beach. In this way, public users are charged any fee. Other recreation centers like Atlantica Hotel Halifax, office sauna and swimming pool and charge people to the hotel to use them. This is often included in the hotel charges. Atlantica Hotel Halifax has a ma gnifiscent hotel that reveals that hotels services accompanying them with enrapturing photo galleries.Golf is well established in Halifax with many golf clubs having commercial interests. In Halifax, there are several golf courses in Nova Scotia. For instance, a new Golf Course is being developed at Forest Lakes, and will charge a fee to golfers. Other golf centers include airline Golf Club, which levies a charge of about $18 to $ 19 for green fees. Other golfing gear are rented here. This golfing club has a lower-ranking website with detailed information and pictures on pricing. This website is well designed and provides clear information about service offered by the club

Project Management Case Study Example | Topics and Well Written Essays - 1000 words

Project Management - Case Study ExampleThis is because any special be given may likely lead to increased costs of operation. If all factors are held constant, there should be no consideration for the increase in the productiveness since the increase will likely lead to a decrease in the profits. Consequently, since the indirect costs are accrued daily on the go through but, are fixed, the possibilities would be that of increasing the costs of certain specific spues bit at the same era decreasing the project time. The decrease in project age of a specific activity results in an overall decrease in the succession for the whole project hence, a decrease in the total overheads (Meredith & Samuel 204). other related issue with the tradeoffs is the determination of activities to be crashed for the enabling of maximum overall job profits. Therefore, the cost-time tradeoffs will enhance the costs of specific activities in the project while reducing the overall cost for the project (Nagarajan 105). Question 2 Options for accelerating project completion There are several options that house be available to the project manager for the enhancement of the completion of the intended project. These include admittance of extra resources into the project, outsourcing for the project work, scheduling of overtime for the project and the establishment of a core project team to look over the projects completion. Other options for the acceleration are conduction the project twice (repeated project), faster and correctly than the first chemise (Gray & Erik 324). However, these options may only apply when the resources for the project are not constrained. If the resources are constrained, then the options available would be fast-tracking of the project to hasten its completion, development and adoption of a critical chain for the completion of the project, reduction of the scope of the project and the compromising of the quality of the project though a faster conduct for as abundant as it is completed (Gido & James 130). In the first scenario, a project manger may enhance completion of a project through the addition of resources. While this will probably lead to augmented costs to the project, it will increase the rate at which the project is delivered thus, a reduction in the time of the project. Activities that can be done in regard to this include employment or hiring of additional staff and purchasing of additional equipment to carry out the tasks. In the second scenario, a project manger may schedule the work involved in the project to entail workers doing overtime. In this regard, the extension in work time will hasten the completion of the project but at an increased cost of maintenance of workers in overtime shifts (Haynes 44). The project manage can also enhance the completion of the project through outsourcing of the project either in terms of outsourcing other materials and laborers from other companies or giving a particle or the entir e project to a different company to carry out. This, just like the former process will reduce the project duration and enhance faster completion of the project but, at a higher cost to the project (Morris 98). Finally, the project manager may enhance the completion of the project through the establishment of a core project team which will be tasked to oversee the stages of the project to its finishing point. In this, the team has to put more(prenominal) efforts to be

Roman Architecture Essay Example | Topics and Well Written Essays - 5000 words

Roman Architecture - Essay ExampleIt could hold 45-50,000 spectators who would queue for tickets days in advance. There would study been a wooden floor covered in sand to soak up the blood (Augent 25).The underground corridors of the Colosseum The arena floor measured 228 feet by 177 feet (crystalinks 3). A wooden construction had existed from the year 29 BC but it was burnt down in the fire of 64 AD (Caggia 1). Nero had not been interested in listening to the demands of his people and following the fire he built a huge palatial palace, known as the Golden House (Domus Aurea), on larger expanses of Roman land. After Neros death Vespasian wanted to offer the Roman people a gesture and set about draining a large lake attached the site of Neros palace and knocking down the great Golden House for its rich source of materials for the amphitheater (Caggia 1). It is understood by historians that the name Colosseum actually referred to the collosus, (crystalinks 2) collectible to a huge statue of Nero that once stood nearby which was 130 foot high (crystalinks 2). A Spectators view of the arenaThe class system was used to determine the sit arrangements of the audience. The first level, called the podium, was for the Roman senators (crystalinks 3) and the seating would have been quite lavish with cushions and marble coverings. Above this on the maenianum primum (crystalinks 3) there would have been Roman aristocracy and then above them the maenianum secundum (crystalinks 3) was give away into two separate areas the wealthy people in the lower section and the poor citizens on the upper section. Domitian had a further wooden section added at the highest position for the very poor and lower class women (crystalinks 3). The entrance would have been on the... Exterior walls of the Colosseum showing the many arches within the Construction Concrete were a good material to use, as it is stronger in resisting compressive stresses whereas it is very weak when dealing with t ensile stress. Spanning an open space or doorway, where forces on the arch are not vertical would provide the most suitable circumstance to use an arch, as it would be at its strongest. The correct formwork had to be used to ensure that the structure would perch intact. Wood wasbuilt in a frame to support the underside of the arch and form its basic structure. The Romans used a Voussoirs technique, which involved the placing of a scar at the uppermost point of the center of the arch. It was understood that they learnt this technique from the Etruscans however, they were the first to adopt the structures for above ground use as previously they had been used for drainage systems and vaults underground. The technique was not the strongest of the arch types, however, it was simple for them to build. There were eighty arches on every floor of the building each of the arches was numbered and divided by half columns of a different style on each floor. There was a Doric style on the grou nd floor where the arches measured 139 in width and 231 in height, followed by Ionic on the second and Corinthian in the third where the arches were lower at 212 in height. The upper wooden floor had windows with panels separated by Corinthian style columns at every second panel.

Coursework Essay Example | Topics and Well Written Essays - 2500 words

Coursework - Essay Examplecoca plant pot confederation owns over 300 brands including carbonated drinks, non-carbonated drinks, fruit drinks, sports drinks and bottled water. It is estimated that this company has a daily employee turnover of 2billion on all of its brands thus providing enough prove that coca Cola Company is among the biggest companies holding biggest market share in the global markets where 80% of the turnover and profitability comes from international markets outside USA. To sustain this dominance and to facilitate its expansions into the new market segments at the same time launching new products the company has to give away market plan in where it outlines mixed guidelines and strategies that the company should fully implement, more notable is that the Company has become a success story because of its various selling strategies that suits the various consumer market segment across the globe (Doole 2008). These marketing strategies have enhanced the continued expansions of the company into the new global electric potential markets through acquirement of other brands countering its major competitors, launching of new brands and development of new markets in the unexploited markets as well as facilitating brand consciousness to the existing and potential consumers thus enhancing consumer satisfaction, trust and loyalty on these brands. The Company approach on laying emphasis on consumer marketing campaigns has seen the Companys brand varieties such as Diet coke, Rc cola, Sprite and Fanta performing well in all the market segments globally. The key factor that is notable to significantly contribute to the Coca Cola Companys global market sustainability is the brand consumer marketing approach of adopting global marketing strategies. The need for adopting global marketing strategies came as a progeny of the company implementing the consideration of expanding into the global markets where they needed to address the various consumer needs , market segments and diverse consumer cultures (Doole 2008). Marketing strategies for making marketing decisions varies in different regions in the ground therefore it has become important for Coca Cola Company to conduct consumer marketing based on the domestic market segment cultures and the needs of the society. Coca Cola Company has faced stiff competition and increased rivalry in the domestic markets and the international markets, its major rival is Pepsi which is also manufacturing and distributing substitute products to those of Coca Cola Company. There are also other challenges that the company needs to address in order to consolidate its position as a draw in the global and domestic markets. These among others include lower sales of brands in the new markets communication marketing mechanisms are inadequate brand recognition and awareness in some market segments was very low and finally is the negative perception of consumers towards Coca Cola brands in regard to health issues. With this situation the Company needed to come up with unique marketing strategies and techniques to ensure that they edge out its competitors through the expansion of its markets and the consolidation of the customer base. To ensure that they identify suitable and appropriate marketing strategies for this consideration, the company sought to understand the consumer theories that may apply in the various societies in regard to marketing. They also found out how various marketing and advertisement models work in the consumer

Case Study Toyota crisis Essay Example for Free

Case Study Toyota crisis EssayOrganizational Crisis negatively sum organizations name and image, as nearly as adversely impact employee by instilling doubt, insecurity and distrust (Tahmicioglu, 2010). Employees are directly completed by the crisis, as they are the primary stakeholders (Obston, 2014) and brand ambassadors of the company. Thus, to ensure wellbeing of employees, especially in time of catastrophe, they should be well informed and fostered under the charge of companys leading.Leaders at Toyota should take an immediate action start with early internal crisis communication, take accountability and show their commitment to answer the crisis. Male (2004) suggests, being proactive and transparent lessen doubt and distress among employees. It testament be beneficial if a live talk is set up with the employees. Live podcast will personalize the message, and will allow employees to directly hear compassion and empathy in the leaders voice. Establishing an active fee dback loop is also in truth effective (Miller, 2014), an online forum on companys intranet will be a great way to facilitate two-way dialogues between employees and executives. The forum will be pivotal in giving direct feedback to employees questions and concerns, and for consistently providing updated information. Along with starting communication, hotlines dedicated for crisis should be provided as part of employee assistance program employees should be encouraged to actively use the services to get professional help they use up for dealing with crisis.Lack of immediate dialogue leads to speculation (Miller, 2014), and when the magnitude of the crisis is as big as Toyotas recall, consistent media scrutiny and amplification of negative news can further fuel anxiety and uncertainty among employees (Cole, 2011). Therefore, its imperative leaders eradicate uncertainty by giving timely crisis communication that precedes external news and provide continuing support to employees.An ear ly two-way dialogue is a good start to lessen the chaos among distressed employees. However, in addition to continuing practice of honest internal communication, for the long run, leaders will need to establish processes specific to employees welfare to restore lost trust.Organizational strategy needs to improve to rectify behaviors that effected employees welfare in past.Toyotas ply philosophy which Liker (2004) described as The Toyota way, was known for continuous improvement and people development however, aggressive focus on rapid growth (Cole, 2011) imparted in insalubrious practices, such as, reward system based on cost control versus quality control, poor training, declining working conditions and work overload (Sullivan, 2010 McNeill, 2013 Cole, 2011). These practices were not only detrimental to employees trust, but also clearly violated psychological contract (Rousseau, 1995) of Toyota employees.To rebuild eroded trust caused by the violation of contract, leaders need to validate employees wellbeing is not compromised again. Gillespie and Dietz (2012) recommend implementing a strategy that will safeguard against future untrustworthy actions. This can be done by articulating and enacting a system instilled with eminent ethical standard, clearly communicated processes and better working conditions. Providing flexible working hours, manageable workload and regular training programs will prove leaders mean well consistently incorporating employees voice will assure their role is imperative in recovery of company image. Lastly, proactively engaging in regular evaluation of processes will result in improved performance and ultimately recapturing the reputation.References1. Cole, R. E. (2011). What Really Happened to Toyota. MIT Sloan Management Review The New trading of Innovation. 2. Gillespie, N., Dietz, G. (2012). The recovery of trust Case studies of organisational failures and trust repair. Institute of Business Ethics London. 3. John, S. (201 0). A think Piece How HR caused Toyota to Crash. Retrieved from http//www.ere.net 4. Liker, J. (2004). The Toyota way 14 Management Principles from the Worlds Greatest Manufacturer. McGraw-Hill 5. Male, B. (2010). How to handle a product recall. Retrieved from http//www.businessinsider.com 6. McNeill, D. (2013). Cover-up Toyota and Quality Control. The Asia peace-loving Journal, Vol 11, Issue 36, No. 1, 7.Miller, J. (2014). 4 Tips to help leaders communicate during a crisis. Retrieve from http//smartblogs.com 8. Obston, A. (2014). 5 ways to communicate with employees during a crisis. Retrieved from http//www.ragan.com 9. Tahmicioglu, E. (2010). Surviving your companys mistake. Retrieved from http//www.nbcnews.com 10. Rousseau, D. (1995). The psychological contract Violations and Modifications. The Organizational Behavior Reader. 8th ed.

Harvard business publishing Essay Example for Free

Harvard business publishing EssayIn mid-September of 2010, Emily Harris, vice president of recent Heritage hoot attach tos point of intersectionion segmentation, was weighing acoustic hurlion plans for the go withs upcoming cap budgeting meetings in October. Two proposals stood out based on their potential to strengthen the divisions innovative product hunts and drive future growth. However, due to constraints on financial and managerial re extensions, Harris k upstart it was possible that the firms capital budgeting committee would decline to approve both projects. She also knew that parvenue Heritages licensing and retail divisions would promote compelling projects of their own. Consequently, Harris had to be prep bed to recommend one of her projects over the other.The Doll Industry revenues in the U.S. flirt and game industry totaled $42 billion in 2008 and were projected to increase by 4.6% per year to $52.5 billion by 2013. The market place was divided into both broad segments video games (48%) and traditional toys and games (52%). The second segment was further divided into infant/preschool toys (14.5%), wenchs (14.1%), outdoor sports toys (12.3%), and other toys games (59.1%) including arts and crafts, plush toys, action figures, vehicles, and youth electronics. The U.S. market for toys and games was dominated by titanic global enterprises that enjoyed economies of scale in design, production, and distri saveion. Revenues were full(prenominal)ly seasonal the largest selling season in the United States coincided with the winter holiday period. inwardly the toy and game segment, U.S. retail sales of dolls totaled $3.1 billion in 2008 and were projected to grow by 3% per year to $3.6 billion by 2013.The doll category admitd large, soft, and mini dolls, as well as doll clothing and other accessories. The phenomenon of age compression the tendency of younger children to acquire dolls that had traditionally been designed for older g irlsreduced growth in the baby-doll sub-segment. Competition among doll producers was vigorous, as a small number of large producers targeted similar demographics and marketed their dolls through the alike(p) media. Lasting franchise think of for a branded line of dolls was rare the enormous success of Barbie dolls was an obvious exception. More recently and on a a lot smaller ________________________________________________________________________________________________________________ HBS Professor Timothy Luehrman and HBS MBA Heide Abelli prepared this case completely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. thither are occasional telephone extensions to actual companies in the narration. procure 2010 Harvard personal credit line School Publishing. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard stemma Publishing, Boston, MA 02163, or go to http//www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, customd in a spreadsheet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or differentlywithout the permission of Harvard demarcation Publishing. Harvard Business Publishing is an harmonise of Harvard Business School.Purchased for use on the disseminated sclerosis Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters other than gather emailprotectedEducational material supplied by The caseful CentreCopyright encoded A76HM-JUJ9K-PJMN9IOrder reference F211857 new-made Heritage Doll CompanyCapital Budgeting4212 in the altogether Heritage Doll Company Capital Budgetingscale, f orward-looking Heritage also had created a durable franchise for its line of heirloom dolls. But the popularity of most doll lines waned posterior a few years.New Heritage DollsBy 2009, New Heritage had grown to 450 employees and generated approximately $245 million of tax revenue1 and $27 million of operate profit from tether divisions production, retailing, and licensing. The production division, discussed further below, designed and produced dolls and doll accessories. The retailing division offered a unique intergenerational experience for grandmas, mothers, and daughters, centered upon the character histories and storylines of the fellowships dolls and delivered through an online website (42%), a mail-order paper catalog (33%), and a net clear of retail stores (25%). In fiscal 2009, the retailing division generated roughly $190 million of revenue and $4.8 million of operating profit.The licensing division was started in 1998, and represented the caller-outs newest and m ost profitable division. It desire to extend the New Heritage brand and capitalize on high levels of customer loyalty by selectively licensing the companys doll characters and themes to a variety of media that reached thefirms target demographic of toddler to pre-teen girls. In fiscal year 2009 the licensing division generated $24.5 million of revenue and $14.5 million in operating profit.New Heritages Production DivisionProduction was New Heritages largest division as measured by total assets, and easily its most asset-intensive. Approximately 75% of the divisions sales were make to the companys retailing division, with the remaining 25% comprising private label goods manufactured for other firms. Table 1 summarizes the divisions various sources of revenue and operating income. Table 1Production Division DataRevenue ($ millions)Operating Income ($ millions)New Heritages dolls and accessories were offered under distinct brands with different bell points, targeting girls between t he ages of 3 and 12 years. The companys baby dolls were generally priced from $15$30, and were offered to younger girls in earlier stages of ontogenesis. These dolls typically came with a birth documentation and a short personal history. Dolls in the higher-end of this category incorporated technology that produced a circumscribed amount of speech and motion. For the 1 The division revenue figures include approximately $95 million of internal sales within divisions which are eliminated when considering consolidated revenue for the company.BRIEFCASES HARVARD clientele printPurchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact emailprotectedEducational material supplied by The Case CentreCopyright encoded A76HM-JUJ9K-PJMN9IOrder reference F211857The New Heritage Doll Company was founded in 1985 by Ingrid Beckwith, a reti red psychologist specializing in child increment and the grandmother of two young girls. Dr. Beckwith believed the dolls produced by the major toy companies did little to develop girls imagination or foster a positive self-image, so she created a line of dolls with unique storylines and wholesome themes. Dr. Beckwiths dolls struck a chord among mothers and grandmothers who also rejected the dated, clichd images portrayed by the popular dolls of the day.New Heritage Doll Company Capital Budgeting 4212New Heritage outsourced much of its production to a select number of contract manufacturers in Asia. To ensure product quality and safety, the company maintained a fulltime staff to oversee material sourcing, production, and quality control on site at each of its manufacturing partners. Manufacturing activities that compulsory precise tolerances or copyrighted addresses, along with all the creative elements (design and product prototyping, for example), were handled in-house at the companys headquarters facilities in Sacramento, California.Educational material supplied by The Case CentreCopyright encoded A76HM-JUJ9K-PJMN9IOrder reference F211857Capital Budgeting at New HeritageNew Heritages capital budgeting process retained some of the informality that characterized the companys early years as an innovative startup. As the company grew, deliberate steps were taken to decentralize some of the project approval process and increase spending authority at the division level. However, large and/or strategic spending proposals were reviewed at the corporate level by a capital budgeting committee consisting of the CEO, CFO, COO, the controller, and the division presidents. The committee examined projects for consistency with New Heritages business strategy and sought to balance the needs and priorities of each division against working financial and organizational constraints. The committee also sought to understand project interdependencies and the potential for a wedded investment to strengthen the whole company, not solely the division proposing it.New Heritages capital budget was set by the board of directors in consultation with top officers, who in turn sought input from each of the divisions. The capital and operating budgets were linked historically, the capital budget comprised approximately 15% of the companys EBITDA. The committee had limited discretion to turn out or contract the budget, according to its view of the quality of the investment opportunities, competitive dynamics, and general industry conditions. Before being considered by the committee, projects were described, analyzed, and summarized in self-contained proposal documents prepared by each division. These contained business descriptions, at least five years of operating and hard cash flow forecasts, spending requirements by asset category, personnel office requirements, calculations of standard investment metrics, and identification of key project essays and mile stones.Financial AnalysesFinancial analysis began with operating forecasts developed with oversight from New Heritage operating managers. Revenue projections were derived from forecasts of future prices and volumes. Fixed and variable make ups were estimated separately, by expense category. Forecasts of working capital requirements were likewise vetted by line managers, who paid particular attention to a projects requirements for various types of inventory. Forecasts for fixed assets and related depreciation charges were developed in cooperation with analysts reporting to the controller.HARVARD BUSINESS PUBLISHING BRIEFCASESPurchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact emailprotected$75$150 price range, New Heritage produced a line of heirloom-quality dolls and accessories. These were designed to appeal to older girls and to convey a sense of cultural and family tradition among grandmothers, mothers, and daughters. The heirloom dolls had more elaborate accessories and personal histories. Finally, the company offered a line of high-end dolls based on fictional celebrities, each associated with a charitable cause andembracing more contemporary fashion trends. These dolls targeted girls in the supposed tween age range of 812 years, and also were priced from $75$150. Like the heirloom dolls, celebrity dolls also came with more elaborate stories and accessories.4212 New Heritage Doll Company Capital BudgetingNew Heritage assigned discount evaluate to projects according to a subjective assessment of each projects risk. High-, medium-, and low-risk categories for each division were associated with a corresponding discount rate set by the capital budgeting committee in consultation with the corporate treasurer. Assessments of each projects risk were made at the division level, but subject to rev iew by the capital committee. Factors considered in the assessment of a projects risk include, for example, whether it required new consumer acceptance or new technology, high levels of fixed costs and hence high breakeven production volumes, the sensitivity of price or volume to macroeconomic recession, the anticipated degree of price competition, and so forth. In 2010, medium-risk projects in the production division received a discount rate of 8.4%. High- and low-risk projects were assessed at 9.0% and 7.7%, respectively.Projects that created value indefinitely, given continuing investment, were treated as going concerns with a perpetual life. That is, NPV calculations included a terminal value computed as the value of a sempiternity growing at a constant rate. However, to preserve an element of conservatism, the capital committee generally insisted on relatively low perpetual growth rates lower than New Heritages historical growth and lower than near-term growth forecasts for a given division.Investment Opportunities in the Production Division Emily Harris was rivet on two of the production divisions most attractive current proposals. The first involved developing the successful chalk up My Doll Clothing note of hand to include matching allseason clothing for tween girls and their favorite dolls. The second involved a new initiative, the Design Your birth Doll line, which employed web-based doll-design bundle to let drug users tailor-make a dolls features to the customers specifications. stand for My Doll Clothing Line ExpansionThe Match My Doll Clothing line to begin with consisted of a few sets of matching doll and child clothing and accessories for warm weather. It quickly became successful after the daughters of a few celebrities were spotted and photographed wearing items from the line, and girls magazines included some of the line in whats hot to wear sections. Given recent publicity, Marcy McAdams, the brand manager responsible for the line, believed the timing was perfect to expand. Specifically, McAdams proposed to create an every last(predicate) Seasons Collection of apparel and gear covering all four seasons of the year.She expected the new offerings to be at least as profitable as the brisk line, since its current popularity would make it possible to maintain premium prices. She also hoped to take advantage of off-peak discounts offered by some suppliers and contract manufacturers as they tried to smooth their mental ability utilization. In the same fashion, McAdams argued the expansion would help reduce, or at least not exacerbate, the seasonality in New Heritages sales and earnings.BRIEFCASES HARVARD BUSINESS PUBLISHINGPurchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact emailprotectedEducational material supplied by The Case CentreCopyright encoded A76HM-JUJ9K-PJMN9IOrder reference F211857Operating projections for a given project were used to develop cash flow forecasts that would underpin calculations of net present value (NPV), internal rates of return (IRR), payback period, and other investment metrics. Cash flow forecasts were intended to conquer the incremental effect of a proposed project on the firms cash flow for each year within the forecast period. That is, each projects cash flow forecasts excluded non-cash items, such as depreciation charges, and nonincremental items such as sunk costs (i.e., costs that would be incurred regardless of whether a given project was undertaken or not). The cash flow forecasts were computed on an after-corporate-tax basis, but excluded all financing charges. Some elements of the cash flow forecasts were prepared with assistance from treasury analysts, but most of the necessary adjustments were well understood by division staff.New Heritage Doll Company Capital Budgeting 4212To exploit the current popularity of the original Match My Doll Clothing line, especially given the fickle nature of childrens fashion trends, McAdams believed the opportunity had to be exploited without delay. Her investment proposal contained relatively large outlays for RD, market research, and marketing to maximize the probability of quick acceptance and longer-term success for the follow-on line. Upfront investment expenditures are summarized in Table 2. Table 2 Match My Doll Clothing Extension OutlaysThe RD and marketing expenditures would be deductible for tax purposes at New Heritages 40% corporate tax rate. The property, rig and equipment was expected to go for a useful life of 10 years the associated depreciation charges, shown in Exhibit 1, were based on the modified accelerated cost recovery system (MACRS) allowed by the IRS. Working capital requirements, shown in Table 2 for 2010 and in Exhibit 1 for subsequent years were based by and large on recent historical experience with the original Match My Doll Clothing line. Finally, given the proven success of Match My Doll Clothing, Harris believed the project entailed guarded riskthat is, about the same degree of risk as the production divisions existing business as a whole.Design Your Own DollThis initiative targeted existing New Heritage customers, many of whom owned several of the companys heirloom dolls. The companys research showed that, when asked what features (e.g., appearance, ethnicity, life story, etc.) New Heritage should give to future dolls, loyal customers responses had a high correlation with their own personal data. That is, girls wanted dolls like themselves. Further research suggested that many loyal customers would purchase yet another doll if they could customize the dolls features to create a one-of-a-kind addition to a girls or familys existing collection of dolls. It also promised to increase the girls pride in and identification with the doll, both because of their shared features an d because of the girls participation in creating the doll. This in turn further cemented customer loyalty.The customization process would begin with a new section of New Heritages website, where proprietary design package enabled the customer to select physical attributes of the doll such as hair color, hair length style, skin color, eye shape, eye color, and other facial features. The software could combine selected features and produce a photo-realistic image showing the finished doll with user-selected accessories. The customer could zoom in or out on the image and turn out it to see different aspects. The softwaremade it easy to try out different combinations of features and accessories before making a purchase.Elizabeth Holtz, brand manager for heirloom dolls, was very evoke about the project. She observed, A girls relationship with her favorite doll is often partly mommy and partly big sister. Either way, having your doll demeanor more like you is really powerful. And the res excitement in the experience exploring the website, naming the doll-to-be, selecting her first outfiteven the anticipation of waiting for the new doll to arrive. I really think this is big. Holtz also believed that the dolls could command a premium price. Customers will naturally expect to pay more for a HARVARD BUSINESS PUBLISHING BRIEFCASESPurchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact emailprotectedInitial Expenditures ($ thousands)4212 New Heritage Doll Company Capital Budgetingcustom doll, she said. Market research with focus groups revealed significant enthusiasm for the product notion and supported the notion of premium prices.The web-based software tools and order entry system required New Heritage to make significant modifications to its existing technology infrastructure, expand its webhosting capaci ty, and modify the terms of its third-party service agreements to ensure a higher level of service quality. The majority of the RD expenditures shown below were related to software development, hardware upgrades, and web design. The development time involved, including product testing, was expected to be approximately 12 months. Initialoutlays, some of which occurred in 2010 and some in 2011As with Match My Doll Clothing, the required RD and marketing costs would be tax deductible. Manufacturing equipment had to be ordered by the end of 2010 to be ready for production at the beginning of 2012. While New Heritage had the option to pay for custom equipment in quarterly installments, the firmcould get a substantial discount by paying for the equipment up front, in 2010. Figures in Table 3 and Exhibit 2 reflect the discounted cost of the equipment. To support the forecasted level of sales, substantial investment in working capital (primarily work in process inventory of partially manufa ctured dolls) would be required beginning in 2011. And still more equipment would have to be purchased and installed no later than 2014. In years 2015 and following, investments in working capital and equipment would revert to patterns familiar from the production divisions traditional lines of dolls.To complete development work, Holtz planned to use some of the companys existing IT staff. The majority of the work would take place during calendar 2011. The number of people and their fully loaded costs are shown Table 4. These costs were not included by Holtz in the initial outlays shown in Table 3 or in the forecasts presented in Exhibit 2. The development personnel Holtz needed were considered corporate resources and were almost certainly available to work on the project.Table 4 Design Your Own Doll Development Personnel, ($ 000s) action Development Personnel CostsWeb Application DevelopersDatabase ManagerSystems Integration SpecialistTotal CostBRIEFCASES HARVARD BUSINESS PUBLISH INGPurchased for use on the MSc Business Valuation, at Imperial College London. Taught by James Sefton, from 21-Aug-2013 to 31-Dec-2013. Order ref F211857. Usage permitted only within these parameters otherwise contact emailprotectedHowever, even a limited degree of customization increased manufacturing complexity and expense. Further, because of the low production runs and volume, fixed costs on a per unit basis were expected to be relatively high. Consequently, the breakeven volume for the project was also expected to be high.New Heritage Doll Company Capital Budgeting 4212Finally, Holtz needed to give Harris her assessment of the projects riskiness. On the one hand, Design Your Own Doll had a relatively long payback period, introduced some untested elements into the manufacturing process, and depended on near-flawless operation of new customer-facing software and user interfaces. If the project stumbled for some reason, New Heritage risked damaging relationships with its best cu stomers. On the other hand, the project had a relatively modest fixed cost ratio, and it play to the companys key strengthcreating a unique experience for its consumers.Educational material supplied by The Case CentreCopyright encoded A76HM-JUJ9K-PJMN9IOrder reference F211857Emily Harris still needed to complete her review and financial analysis of the two proposals. McAdams and Holtz were in frequent touch with Harris and both had offered to respond to any questions she might have about the proposals the business case, the financial projections, the operating details, or anything else. Harris expected that she would indeed have some follow-up questions as she worked through her financial analyses.She also knew that her final recommendation might disappoint some executives within the division, who would scrutinize it closely. It had to be well-supported.