Case Analysis : Dupont Company

Approval is typically required by both the parent’s and the subsidiary’s boards of directors in order to implement an equity carve-out. While the specific

Nuware Inc. is being analyzed in this situation because a large institutional client of the research firm Wyburn Malone is looking to enter an equity position in Nuware Inc. In making their decision, Wyburn Malone has been asked to restate the statements of Nuware Inc. Due to the apparent earnings growth displayed by the company, even in a period of difficult business, Nuware has become a strong investment opportunity. As with all Wyburn Malone’s research projects, the focus of this analysis centres on determining whether Nuware management has utilized over aggressive or too conservative accounting practices, resulting in earnings that are not real in nature.

MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.

Boston Beer Company (BBC) has enjoyed much success with their craft beers with Samuel Adams as their main focus. Being the leader of this segment, overtopping five of their competitors combined (Exhibit 1), the company now must decide how to take advantage of the light beer market. Boston Lightship, their current light beer, had been a small contributor in BBC’s product line. Currently, it is facing dwindling sales with product volumes down from 12 000 cases per month to 3000 cases per month.

Equitable chose an equity carve-out method for DLJ. This would allow them to retain at least 50% of the equity of the subsidiary, so it could still consolidate its financial statements as well as file a consolidated tax return. An obvious advantage of this method is the parent company doesn’t lose control over its subsidiary. Another advantage of this method and the spin-off method is

DuPont a well-known and once very well respected chemical company, is now known for their irresponsible business tactics and the way they dealt with the chemicals onsite, and the pollution it caused in our air and our drinking water. DuPont purchased a large piece of land about sixty acres in New York, West Virginia, known as a small town and consisted of a lot of farming and irrigation, cattle, and production of crops. The DuPont case started when a local farmer in the community exploited the footage of the stream nearby being polluted with chemicals from the DuPont plant. The local towns people, were fed up with the situation in their town and the injurious ways it was affecting their cattle, so they set up a meeting with a corporate defense

e. A parent’s less-than-wholly-owned subsidiary issues its shares in exchange for shares of another subsidiary previously owned by the same parent, and the noncontrolling shareholders are not party to the exchange. That is not a business combination from the perspective of the parent.

availability of substitutes 1, and the threat of retaliation from incumbents (by lowering price, for

(If the company produce the BB first, the company will buy 4000 labor hours, and it will use 2500 for BB and the remaining hours to produce WRM = 1500.

Coming out of the first year of the merger, what new opportunities should the new “Defining Entity” pursue in order to grow business?

The political lens sees an organization as “an arena for competition and conflict among individuals, groups, and other organizations whose interest and goals differ and even clash dramatically” (Ancona, Kochan, Scully, Van Maanen, & Westney, 2005: M-2, 33). It assumes that “In the political perspective, the roots of conflict lie in different and competing interests, and disagreements require political action, including negotiation, coalition building, and the exercise of power and influence, all of which recognize that rationality is local” (Ancona et al., 2005: M2, 33). I will analyze and explain the concepts within the political landscape to explain the new front end / back end structure at Dyna Corporation,

MediSys is a U.S.-based medical device manufacturer. It has been developing IntensCare project, a new medical system for monitoring patients in intensive care units. This project represents the most ambitious move in the company’s 10-year history. The company had invested large finances in this project and the market eagerly awaits its launch. The product development team consisting of people from several functional areas of the company, has been working on the product for six months but is now facing significant problems with the product design, clinical testing, meeting the production deadlines, and their own group dynamics. The pressure had also increased because of competitors also planning to launch similar products within the year. Several team members are concerned about meeting the team 's goals. The relationship between team members is quite tense and it doesn’t promise much progress.

United Beverages’ CEO is debating with his department heads on the course of action the company is going to take in the future. Their flagship product, GangBuster, has been highly successful for the past 5 years. However, they have been thinking of entering the market for Energy Drinks for kids. Paul Diaz also comes up with a revolutionary idea of the dual-drink, having two separate flavored drinks in a bottle and being able to mix both flavors. Due to the limited resources of United Beverages, they have two weeks to decide whether to expand their portfolio or not?

The Kraft Heinz Company successfully merged on July 2, 2015 when Heinz owned by Berkshire Hathaway and 3G Capital teamed up with Kraft Foods Group. The deal is considered one of the top most mergers in the food and beverage industry worldwide. Currently the company has its strong presence worldwide. Moreover both 3G Capital-a Brazilian Equity Firm and Warren Buffet together contributed by investing $10 billion in the deal making the company worth about $46 billion.

Honicker Corporation is a USA based, successful dashboard manufacturer. It has opportunities for international expansion, but due to the ultraconservative culture it did not happened until they faced a change in management in 2009. Honicker was a rich company, and to expand, they took the short road and acquired four companies around the world: Alpha, Beta, Gamma, and Delta. There were two commonalities among these companies: they serviced mainly in their own geographical area, and senior management knew their geographical culture and hold good reputation with their stakeholders.