Week 2 Homework

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NUFNZ19

Business Finance

BUSI 4900 CAPSTONE STRATEGIC BUSINESS MANAGEMENT

Description

Decisions & Reports

Enter Y11 decisions and view / print Y10 reports.

Go to Decisions/Reports


Decision / Reports
Program Overview


Collaboration /
Audio Mode Demo

Last Log Ins
CO-MANAGERLAST LOG INLAST SAVE
Alefa Ah Sam15-Jul-2019, 8:41 AMN/A
Dani Doring14-Jul-2019, 3:13 PMN/A

View all company co-manager log-in & save details

Industry 32 Scoreboard

Game to Date Scoreboard — Year 11

Scoreboard
RANKCOMPANY NAMEI.E.1SCOREB-I-I 2SCOREOVERALL3SCOREBONUS POINTSOVERALL G-T-DSCORE
1 (tie)A Company1001001000100
1 (tie)B Company1001001000100
1 (tie)C Company1001001000100
1 (tie)D Company1001001000100
1 (tie)E-Happy Feet1001001000100
1 (tie)F Heart and Sole1001001000100
1 (tie)G KO Kicks1001001000100
1 (tie)H Company1001001000100

1Overall (game-to-date) Investor Expectation score.
2Overall (game-to-date) Best-In-Industry score.
3Combined Investor Expectation and Best-In-Industry scores based on instructor-established 50%-50% weighting.

Deadline Reminders


To access all assignments, click the Assignments item in the main menu.

Interest Rates

Interest Rates
CREDIT RATING
(AT END OF Y10)
1-YEAR LOAN5-YEAR LOANS10-YEAR LOANSOVERDRAFT LOANS
A+5.5%6.0%6.5%7.5%
A6.0%6.5%7.0%8.0%
A-6.5%7.0%7.5%8.5%
B+7.0%7.5%8.0%9.0%
B7.5%8.0%8.5%9.5%
B-8.0%8.5%9.0%10.0%
C+8.5%9.0%9.5%10.5%
C10.0%10.5%11.0%12.0%
C-11.5%12.0%12.5%13.5%

Exchange Rates

Exhange Rates Affecting Year 11
YEAR 10YEAR 11REVENUE IMPACT
Exchange Rate Impact on
Revenues Generated in:
Europe-Africa (US$ per €)1.12631.12630.00%
Asia-Pacific (US$ per Sing$)0.73620.73620.00%
Latin America (US$ per R)0.31630.31630.00%
Exchange Rate Impact on
Cost of Pairs Shipped from:
North America Plant to
Europe-Africa (€ per US$)0.88790.88790.00%
Asia-Pacific (Sing$ per US$)1.35831.35830.00%
Latin America (R per US$)3.16163.16160.00%
Europe-Africa Plant to
North America (US$ per €)1.12631.12630.00%
Asia-Pacific (Sing$ per €)1.52981.52980.00%
Latin America (R per €)3.56133.56130.00%
Asia-Pacific Plant to
North America (US$ per Sing$)0.73620.73620.00%
Europe-Africa (€ per Sing$)0.65370.65370.00%
Latin America (R per Sing$)2.32802.32800.00%
Latin America Plant to
North America (US$ per R)0.31630.31630.00%
Europe-Africa (€ per R)0.28080.28080.00%
Asia-Pacific (Sing$ per R)0.4296

Projected Year 11 Performance

Scoring Measures

Year 11

Investor

Expectation

EPS (earnings per share)

$

2.28

$

2.50

ROE (return on equity)

19.6%

21.0%

Credit Rating

A–

B+

Image Rating

64

70

Other Measures

Year 11

Change

from Y10

Net Revenues ($000s)

448,270

+3.6

%

Net Profit ($000s)

45,682

+14.2

%

Ending Cash ($000s)

53,933

+47,859

Branded Footwear Production

North America Facility

Europe-Africa Facility

Asia-Pacific Facility

Latin America Facility

Branded

Production

Specs

Materials

(see anticipated materials

prices at bottom of page)

Standard Materials %

Superior Materials %

Number of Models / Styles (50 to 500 models)

Enhanced Styling / Features ($000s per model)

TQM / 6-Sigma Quality Program ($/pr. produced)

68

%

$

k/model

$

per pair

0

%

$

k/model

$

per pair

46

%

$

k/model

$

per pair

0

%

$

k/model

$

per pair

Projected S/Q Rating (the style/quality rating ranges from 0.5 to 10.0 stars)

Projected Reject Rate (percentage of pairs that will fail inspection)

4.0★

7.0%

0.0★

0.0%

4.1★

10.1%

0.0★

0.0%

Maximum Y11 Production Capability

(assuming all unused facility space is filled at the

beginning of the year with production equipment)

Without Overtime

Maximum Overtime

5,000 pairs

6,000 pairs

0 pairs

0 pairs

6,000 pairs

7,200 pairs

0 pairs

0 pairs

Total Branded Production Needed in Year 11

(to satisfy projected demand in all four regions)

8,700 pairs

(before rejects)

This figure is an approximation given beginning inventories, projected reject rates, and entries that currently reside on the Internet and Wholesale Marketing decision pages. The company must schedule production of about this many pairs to satisfy projected demand and inventory requirements.

Note:

To install production equipment at the beginning of the current year in a facility that currently has unused space, go to the Production Facilities decision entry page (the next item in the decision entries menu).

Year 11 Production

Capability (000s of pairs

before rejects)

Regular-Time

Overtime (20% maximum)

Total Production Capability

Branded Pairs to be Manufactured in Y11 (000s)

Total = 8,282

Branded Footwear

Production (000s of pairs)

Regular-Time Production

Overtime Production

Rejected Pairs (and reject rate)

Net Branded Production

Production Capability Remaining for Private-Label Operations

4,000

pairs

800

4,800

pairs

pairs

4,000

pairs

33

282

(7.0%)

3,751

pairs

767

pairs

0

pairs

0

0

pairs

pairs

0

pairs

0

0

(0.0%)

0

pairs

0

pairs

4,000

pairs

800

4,800

pairs

pairs

4,000

pairs

249

429

(10.1%)

3,820

pairs

551

pairs

0

pairs

0

0

pairs

pairs

0

pairs

0

0

(0.0%)

0

pairs

0

pairs

Cost of Rejected Pairs (in $000s and $ per pair produced)

$6,302

$1.68

$0

$0.00

$8,175

$2.14

$0

$0.00

Costs Associated with

the Production of

Branded Footwear

Materials Cost

Labor Cost (including supervisory costs)

Enhanced Styling/Features

TQM / 6-Sigma Quality Program

Production Run Set-Up

Maintenance (of facilities and equipment)

Depreciation (of facilities and equipment)

Total Branded Production Cost

$000s

$/pair

31,942

35,488

2,000

4,033

4,500

2,907

9,402

90,272

8.52

9.46

0.53

1.08

1.20

0.77

2.51

24.07

$000s

$/pair

0

0

0

0

0

0

0

0

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

$000s

$/pair

39,261

19,986

2,000

3,824

4,500

3,755

7,792

81,118

10.28

5.23

0.52

1.00

1.18

0.98

2.04

21.24

$000s

$/pair

0

0

0

0

0

0

0

0

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Anticipated Y11 Materials Prices

Standard Materials

$

per pair

Superior Materials

$

per pair

Beginning figures represent actual materials prices from the prior year.

Anticipated

Materials

Prices

Global materials prices are a function of industry-wide usage of superior versus standard materials and industry-wide utilization of available footwear production capability — see page 4 of the Footwear Industry Report for Year 10. You may enter estimates of Year 11 materials prices above. The more accurate the estimates, the more accurate your projected production costs will be.

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Explanation & Answer

Attached.

Running head: Year 11 Projection

1

Year 11 Projection
Name:
Institutional Affiliation:

Yea...


Anonymous
Goes above and beyond expectations!

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