Analysis of Maximum Potential Impact to Revenue from Trucking Accident
I have conducted an analysis of Biovail’s estimate that their 3rd quarter revenue would be impacted by $10 to $20 million due to the recent trucking accident. My conclusion is that Management has made serious mistakes in this estimate and it is not clear if this is due to incompetence or an intention to deceive investors. While my high level estimates show that a truck could hold upwards of $53.46 million worth of Wellbutrin® XL if completely full (and therefore the truck would only need to be ~19% full to contain $10 million worth) the bill of lading obtained by the state trooper clearly showed that the total weight of the freight on board was only 11,690 pounds.
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Even J.P.Morgan who maintains a bullish stance on the name cited poor earnings quality and CIBC ceased coverage after citing production delays and operational uncertainties. As outlined above Biovail’s management has materially misstated revenue guidance in my opinion either due to incompetence, or of even greater concern possibly engaged in deceptive disclosures. It is also possible that they were attempting to engage in channel stuffing to inflate revenue figures. The fact that management applied pressure to retract a negative report published by a former Banc of America analyst and then made negative public statements regarding his coverage is a huge red flag in my mind. This is a highly unusual tactic and raises ethical concerns. Despite these aggressive tactics analysts should not shy away from covering this stock as it is their role in the capital markets to provide an independent view for investors, be that positive or negative and this is never more important than when something improper may be in play or when fundamental performance is at a tipping
FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.
After having a very successful performance and getting second place on the first Littlefield simulation game we knew what we needed to do to win the second simulation game. We were very eager to outperform our competition and we almost did so, but ended up in second place again with a cash balance of $2,660,393.
The consequences of increasing credit period are more cash required to be invested in working capital and also losses due to increased bad debts.
➢ Has to do what: To decide to either confront Gilman and change what she perceives as sexist and/or racist practices or to leave the company
2. Is there evidence of disparate impact against African Americans in the decisions that were made? On what basis did you arrive at this position? Illustrate how the “80 percent rule” can be used with the data in Exhibit 3.2.1 and whether there was a violation of this rule.
I think Big Pharma companies skew their data very regularly. Although this is not ethical, it's practiced in this field because there is a certain probability calculated as it relates to side effects and ineffectiveness. For instance when we take Tylenol as a child we eventually become tolerant to the dosage. As we get older we need to increase the dosage even more than is advertised to get relief. The Pharma companies do not advertise that ALL pills have a toxicity level and will affect our organs at some point in time. Each pill is tested for toxicity levels before being released to the public. With that said, these companies take on a certain amount of acceptable risk when producing medication. The public has accepted this risk with
Eighteen wheelers are a vital part of interstate commerce in our country. The big rigs carry products across state lines, and keep our stores’ shelves stocked with the things we need on a daily basis. But, when a trucker is involved in an accident, the injuries are usually catastrophic. The sheer weight of a truck is such that when it collides with a car, the results are severe. Drivers and passengers in cars can suffer broken bones, internal organ damage, spinal and brain cord injuries, or even death. Staying safe around big rigs requires drivers to pay extra special attention when near a truck, and to keep a safe distance. But, drivers can only do so much; it also takes diligence on the part of the trucker in order to safely share the road.
Zoecon Corporation was founded forty three years ago by Dr. Carl Djerassi. The company mainly focuses on insect population control. The company has over 18 brands and Products. Zoecon developed an insect growth regulator (IGR) brand called Strike ROACH ENDER. IGRs are efficient in eliminating insect populations; they are also less toxic than other household insecticides. IGR affects the reproductive cycle of insects but do not kill them. For IGR to kill insects, it has to be combined with an adulticide. However, adulticide has a short term effect on roaches. Therefore, when all areas are not treated, roaches move away and dwell on untreated areas. So adulticide can reduce the effect of an IGR. To introduce Strike ROACH ENDER to the market,
Typically, the way that the trucking companies try to handle an injury accident is to simply pay off their victims to keep them quiet. They may work with a team of truck defense lawyers and insurance companies to try to determine the absolute minimum amount that one of their victims will accept as a payment. It is the job of these trucking defense lawyers and insurance agents to get their clients off the hook for the lowest dollar amount possible, and they have grown exceedingly efficient at it. The priority for these California trucking defense lawyers is to minimize their client's financial liability and see to a quick resolution so that their clients can
The Federal Motor Carrier Safety Administration branch of the U.S. Department of Transportation’s released its Commercial Motor Vehicle Facts report in March 2013; that in 2012, there were 5,700,000 Commercial drivers operating in the United States and a total of 504,093 interstate freight carriers operating. There was also a total of 15,465 intrastate hazardous material carriers on the highway. In 2012 alone, there were 75,542 carriers permitted to drive on the highway and roughly an equal amount in 2011, with 75,519. The importance of all of these statistics is that with the ever-growing number of commercial vehicles on the road, the amount of accidents increase as well. In 2011, 3,757 traffic crash victims were killed in a crash with a large truck and nearly 88,000 were injured. The fatality rate per 100 million vehicle miles traveled is .136 for large trucks and busses and the injury rate is 3.8. The estimated costs of commercial motor vehicle crashes totaled $87 billion; with $39 billion from fatal crashes, $32 billion from injury crashes and $16 billion from property damage only crashes. Not all of these accidents and fatalities are commercial carriers fault, because there are other drivers on the road that are distracted or under the influence for instance, but there can be extra precautions taken to decrease the amount of crashes and damage. Decreasing the wait time, also known as detention time, at shipping and receiving facilities, allows the drivers to be driving
from customer needs & responses to new Medisys concepts, & then passed these on to
In this case study, a manager named Abdul has to deal with one of his subordinate named Hahn Chen who problem working along with another colleague has named Amie Lee. Chen wishes to be transfer and report directly to Abdul instead of Ms. Lee because Ms. Lee is not a technical supervisor. This is typical problem between employees that happens often in a working environment. A problem like this often helps demonstrate conflict managing and how good a manager is. The problem Abdul face covers many areas of organizational behavior such as conflict and negotiation, organizational change and stress management, communication, personality and values.
This case study focuses Burroughs Wellcome and their drug Retrovir. Retrovir is a drug that treats AIDS and AID-related complications. In 1987, Burroughs Wellcome obtained approval from the FDA to market azidothymidine (AZT), also known as Retrovir, as a treatment for AIDS. Retrovir was the only kind of drug on the market. Because of this, many critics accused Burroughs Wellcome of price-gouging, as the price of Retrovir was $188 for a hundred 100mg capsules sold to wholesalers. The president of Burroughs Wellcome, T.E Haigler, defended the high price, stating it was due to uncertainty in the market, the possibility of new drug therapies, and profit margins created by new drugs. Even though Retrovir’s price was dropped 20 percent in December 1987, and 20 percent more in September 1989, due to the House of Representatives launching an investigation, there was still pressure to lower the price. The big question faced in this case is what is Burroughs Wellcome’s next move regarding pricing?
As Star River is a private company and has not issued stock, we need to make several assumptions when calculating market value of equity and price of equity. Analysis of similar companies reveals that Wintronics, Inc. and STOR-Max Corp. are the most similar firms in the market. To calculate Star River’s market value of equity I used market to book value method. I found M/B for Wintronics to be 4.4 (market price per share/book value per share) and 3.9 for STOR-Max. an average M/B ratio is 4.15, so multiplying Star River’s book value of equity of 47004 by 4.15 I found Star River’s market value of equity to be SGD195,066.6M. Average beta of these two companies is 1.615. The global equity market premium is 6%, and I use 10 year Singapore T-bond yield of 3.6% as my risk free rate.
Vitality’s old Performance Management System presented some problems that were affecting some of its most talented employees. The analysis of those problems as well as the identification of their root causes will allow us to make a reflection about the company’s previous Performance Management System in the following paragraphs.