Polar Sports, Inc.: Case Study

Tucker Hansson, the owner of Hansson Private Label, is struggling in whether to execute the $50 million investment proposed by his manufacturing team. Under this situation, the subject of this report is to evaluate the potential investment of expanding production capacity at Hansson Private Label (HBL) and make a recommendation to Tucker Hansson. In this report, I will specifically focus on analyses of the project’s free cash flows (FCFs), weighted average cost of capital (WACC) and net present value (NPV). With a sensitivity analysis, it can help us to observe how change in some key project variables

1. ROE 2.25% - If this ROE went up it means Speedster Athletics is improving on generating profit from assets (without requiring as much debt) and have a better competitive advantage by creating more wealth to shareholders. If ROE went down Speedster is financially over leveraged may have been making high risk investments which is impacting stockholder value.

(a) increased the number of sports it is affiliated with; would help not only to build brand credibility, but also build a bridge to new customer markets.

discontinue the old spikes, Sale both the new cleats and spikes but in limited production, or just

Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.

Fast changes in environmental market place such as social development (globalization and development of social networks), economic unsteadiness (crises), technological progress, fast growing competitive world and strict marketing regulatory directly affect work of most of marketing companies or marketing and brand image divisions of the companies. I order to implement a successful campaign or increase sale and consumer awareness companies have to stay in pace with recent marketing environment and take into consideration every possible detail that might help or ruin image of a company or product.

The scenario that I am writing on is Prince Sports and how they market to their

Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

S &A / Sales, Current Assets / Sales, and Current Liability / Sales have been adopted from previous income statements and balance sheets from 1995 to 2001. Perhaps, we can take new assumptions. Generally, the case issue is to examine if the share price of Nike is undervalue or overvalue and the common stock of Nike Inc should be added to the North

The management of Sports Products Inc. should pursue maximization of shareholders’ wealth as its paramount goal. As far as we know, the stockholders are the owners of the firm and the ones bearing the most risk in running it. In line with this, the board of directors and/or the management is

7.Anticipate business problems that may result from allocating manufacturing overhead based on the cost of the prints.

Besides, decreasing the production cost is also important as the firm can then lower the price. So the decisions related to change in plant size, process improvement and the training are also important.

Second, if we look at the individual businesses of Suez Lyonnaise after the merger, all of them except for “Other” (non-core) have demonstrated a consistent increase in revenues, EBITDA, and net earnings, which again provides greater value to its shareholders. The “Other” businesses

Gupta's recommendation to use level annual production. Gupta believes that level production has two main advantages. First, under level production, Guna does not need seasonal hiring and layoff, thereby maintaining a more stable workforce. Secondly, level production can reduce the manufacturing risk, to decrease the profitability of equipment breakdown in peak season, due to a large amount of production request. The cost of equipment breakdown will be huge since Guna's production will be out of stock in the peak season. Based on Gupta's estimation, using level production will reduce the company's direct labor and other direct manufacturing cost from 34% to 29% of its purchases. The impact of Gupta's proposal is illustrated in Exhibit 8, Guna's note payables shows that company cannot clean up its