The Box Inc., where we think
Term Project: The Box Inc™
University of the West Indies, Cave Hill Campus Lauriston Streekes
Lecturer: Dr. Justin Robinson Date: 4 August, 2011
The Box Inc., where we think
2 August, 2011
MEMORANDUM
TO: Board of Directors FROM: CEO SUBJECT: Performance Report (Q1 to Q12)
The Box Inc. was established eleven quarters ago to bring a high quality product to the marketplace, filing a void for boxes made out of 100% recycled material. From the outset the aim of the organization was to maximize shareholder wealth and mould the company into a leading manufacturer of packaging material. Having been selected to lead that task, I was honored at the confidence placed in me to guide this new and energetic
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As such, the management team feels confident of its ability to repay the loan requirements, also taking into consideration the additional revenue forecasted from the increased unit sales as a consequence of increased machine and plant capacity.
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The Box Inc., where we think
Forecast Management will also be implemented from Q13 onwards. This would comprise a special unit within the Strategic Planning Division which will closely monitor and analyze the forecasts and trends as it pertains to unit production and price elasticity of demand. While there are many ratios used to analyze and gauge a firm’s performance, The Box Inc. chose five ratios/data points which shall be used as a baseline to the organization’s overall performance. These ratios/data points were chosen as they were seen to give a good indication to how the firm is maintaining its goals of a balance between profits, debt management and shareholder value. The ratios in the table below will be used as a guideline to assist in the organization’s future operations. In order for an organization to progress, it is important to look back at its past performance, see what was done right, what was done wrong and what could be improved. The matrix below, patented by the firm as “The Box Inc.
Performance Metrics Ratio-Analysis
Five and ten-year forecasts are also one of Johnson & Johnson’s planning and control system strengths. Through five and ten-year forecast, Johnson & Johnson encourages managers to stretch their imagination and open up thinking. Also, five and ten-year plans let the managers have long term views and learning opportunity. They are not meant to be a forecast, rather
* Our company’s sales forecast has been based on performance from previous years along with market circumstances. We are looking at the future of the business objectively which we then can evaluate past to
The second task that needed to be finished was to forecast the income statement and the balance sheet for the next two years. We grew sales at a 15% rate, which is the stated rate from Koh. Also, in forecasting the balance sheet, we only showed debt financing for the capital expenditure of the DVD manufacturing equipment, which was the requested structure. Other relevant facts and assumptions for preparing the financial forecast are stated below-
2.0 Potter Box Potter Box was introduced by Professor Ralph Potter in 1965. Potter Box is used to study the complex ethical issues that involves balancing possible harm to different publics, and as a tool for managing dilemmas (Watley, 2013). Through this report, we aim to use the four steps of Potter Box to understand this case study better, and to help lead us towards a conclusion. 2.1 Defining the Situation The first step of Potter Box is to understand the facts of the case, so that we have a better understanding of the situation (Long, 2011).
Bed, Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash and issuing debt. This could allow BBBY to improve their return on equity and raise earnings per share. Given the low interest rates available it seems like the perfect time for BBBY to add debt to its capital structure. Until now they
1. Consider Dunlap’s statement on page 3 of the case: “Stakeholders! Every time I hear the word, I ask how much did they pay for their stake? There is only one constituency I am concerned about and that is the shareholder primacy? Do you agree or disagree with Dunlap’s view of shareholder primacy? Explain
This document is authorized for use only in Financial Management23 by Dr. Raj, at Institute of Management Technology - Dubai from January 2015 to July 2015.
2. Compares the returns of the asset to the market over a period of time (Beta)
Analyzing the company’s performance compared to its historical figures is always useful; nevertheless, these historical figures can be also a very useful tool to forecast future ProForma figures. We usually start by forecasting future sales (based on an average increase in sales figure) and other balance sheet and income statement items are forecasted as percentage of sales, this percent is normally consistent from historically figures. A close look should be given to the company’s operations and plan for the coming year while making our assumptions and forecasted figures. Normally we should follow
The case study detailing the dilemma faced by the organization known as Box, Inc., is one concerned with the challenge of maintaining organizational culture in the face of rapid growth. The organization began as a classic start-up company that evolved out of a garage by a few friends. Beginning as a simple organization with few team members paved the way for the successful culture that would permeate the company for years to come. The challenge facing Box, Inc. in the study is not one of loss, but, rather, one of gain. The organization has rapidly expanded in the last few years, now hosting multiple sites around the globe and over a thousand employees. This rapid change presents the top executives, such as CEO Aaron Levie with the difficult task of preserving their start-up culture that breeds ingenuity and success. One managerial solution the top executives implemented was their institution of a rigorous and highly selective hiring process. This solution was highly effective in maintaining the organizational culture within Box, Inc., in light of the multiple organizational behavior theories that describe the strong correlation between selective hiring and cultural sustainability within a company.
The proliferation of packaging products and poor product education has caused confusion among end users. US consumers have traditionally viewed packaging supplies as a cost-saving resource. Consequently, packaging engineers are accorded high status and influence roughly 40% of material purchase decisions. The US market is experiencing strong growth, driven in part by the growth of the coated and uncoated bubbles segment. However, AirCap's market share remains stagnant (Appendix A).
In a company like Bayonne Packaging, Inc., a printer and paper converter, it is very important that performance measures such as cost, quality and delivery are in agreement with the forecasted values since this firm used to compete based on low cost, good
Changes witnessed over the last few years on mode of packaging and its economic impact.
This makes the company look good and they can afford to do this from good financial skills. Decisions like this make a good profit in the long run and all in all this is why it is so important to have a good management team.
The concept is illustrated in Figure 1.The profit plan and second-year forecast are used to control the business and evaluated mangers in respective of “planning, forecasts, and achievement”. Under these plans, managers can prompt find problems by reviewing the budget on three occasions, comparing the variances between real number and estimated number, and correcting the errors in order to achieve the long term target. Managers can perceive and understand how and why their estimates have changed over time; consequently, they will control themselves to meet their long-term targets on their own initiative.