Free Essay

Hbs Case Study

In: Business and Management

Submitted By yining
Words 397
Pages 2
To PTC Management, The following report states a series of analysis dedicates Prestige Telephone Company’s (PTC) commercial sales’ change and consumers’ reaction due to the proposing of excise tax by government. This report is generally divided into three parts, situation before excise tax has proposed, the impact of the proposed 1% excise tax, and a proposition of a more win-win solution to generate same tax revenue. In March, before excise tax has proposed, commercial customers are charged $800 per hours and total consuming hour is138 hours, total revenue is $110400. Besides, raising or lowering commercial price by $150 will reduce or boost demand for commercial services by 12%. Base on these two conditions, for each additional hours customer consuming, the price of commercial sales will decrease by 9.058 dollars(All data involve in this report is accurate to two decimal places). The price has a linear relation with quantities consumers’ purchasing. Also, PTC commercial capacity is equal to 85% of revenue maximizing output (which is 96.19 units of PTC products). Under above conditions, before excise tax has proposed, the maximum revenue is $113380.21 with 96.19 consumers’ purchasing at price of $1178.71 in March. In April, after a 1% excise tax was proposed, our price increased by $8. Quantities of output decreased by 0.88. Also, revenue decreased by $2587.25 in total. Furthermore, as customers have a certain amount of income, price of the good increases, customers’ preference have to change to corresponding bundles. When price goes up, consumers have to decrease quantities purchasing, therefore their satisfaction level goes down by 1098.48 units. Moreover, instead of imposing a 1% excise tax, government could generate the same amount of tax revenue by imposing an income tax on customers. Comparing imposing income tax and excise tax, we know that imposing an income tax on costumers will be less harmful on costumers’ satisfaction level of purchasing goods. To collect the same amount of tax revenue, it is better to impose an income tax than proposing a excise tax. In conclusion, PTC should dissuade the government from imposing a 1% excise tax on commercial data service. Instead of imposing excise tax, government should generate tax revenue by imposing an income tax. Since imposing an income tax will cause more costumers satisfaction than imposing exercise tax while maintaining the same amount of tax revenue.…...

Similar Documents

Free Essay

Diadeo Case Study Hns Hbs

...High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/6c92feaa-fc0f-11e0-b1d8-00144feab49a.html#ixzz2Cu5c99bj Case study: Diageo By Abby Ghobadian The story: After a series of mergers, demergers and acquisitions, the management of Diageo, the conglomerate formed by the 1997 merger of Guinness and Grand Met, made a strategic decision to focus on premium alcohol drinks. Diageo was in charge of an expanding and wide-ranging collection of brands, some of which had broad appeal across many countries while others had more regional appeal, sometimes limited to just a few markets. The challenge: After both organic growth and acquisitions, three key dilemmas emerged by 2002. First, how to manage brands with significantly different appeal, such as Guinness, a brand with strong Irish roots but huge global appeal, or Buchanan’s, the leading Scotch whisky in Latin America. Second, how to rejuvenate tired brands and third, how to improve the market share of the most successful brands, such as Captain Morgan, J & B, Smirnoff and Johnnie Walker. The initial strategy: To help managers maintain focus and allocate resources, Diageo developed three brand classifications: global priority, local priority and category. The global priority brands were the big sellers that......

Words: 1041 - Pages: 5

Premium Essay

Hbs Bea Associates Case Study

...HBS BEA Associates Case Study By Siyu Liu Garrett Stevenson Michael Cinelli Mohammed Shahruz BEA Associates is an investment advisory firm founded as Basic Economic Appraisals in 1934. As of March 31, 1992, the firm manages $15.4 billion, representing over 164 institutional clients. BEA’s investment philosophy emphasizes return enhancement as well as risk control. BEA has been consistently earning returns in excess of the index averaging 80 basis points per annum by using enhanced equity index funds and enhanced cash strategies with various arbitrage-like techniques. BEA’s new enhanced index client is a Luxembourg subsidiary of a Japanese life insurance company. Jeffrey Geller and David DeRosa, derivatives portfolio manager at BEA Associates, are considering alternative ways of investing $100 million provided by this client. They want to find the most attractive combination of derivative and cash market positions to achieve the client’s objective of outperforming the S&P 500 stock index by 50 basis points in a low risk manner. The current alternatives are shown in Exhibit 1 in the Appendix. This case study will discuss the first three index synthetic alternatives. A general equity index fund is a type of fund that tracks the performance of a particular stock index with the objective of earning the average market return of the selected index stock portfolio. While an enhanced equity index fund invests based on benchmark indexes like the S&P 500, it offers the......

Words: 1623 - Pages: 7

Premium Essay

Hbs Case Interco

...HBS Case Study : Interco 9-291-033 * Started out as shoe company – been around a long time * •
Business has spread to other consumer products / services through acquisitions * •
Fairly conservative financially, debt level is relatively low * Interco has moved away from apparel and general retail (went from 59% to 40% of total sales) • * Placed more emphasis on the footwear division. (acquired Converse in 1986) • * Placed much more emphasis on the furniture division (sales rose from 20-33% of Interco’s total sales) Current Scenario * •
Cheap imports hurting profitability of U.S. apparel manufacturers * 
•
Retailing industry profits reduced due to drop-off in consumer spending and deep discounting programs being offered by retailers in 1987 
 * 
•
Furniture and home furnishings prospects appear bright given favorable demographic trends in family formations (success of firms like Home Depot proved this ex post!) 
 * •
October 1987 stock market crash still in rear-view mirror Operations Currently has four major divisions 1. Apparel (e.g., London Fog) 2. General retail merchandising (Central Hardware) 3. Footware (Converse, Florsheim) 4. Furniture and home furnishings (Ethan Allen) Interco's Goal * •
Improve long-term sales and earnings growth • * •
Earn increased return on assets and equity Concern 
Interco concerned stock price may be undervalued * Management felt that......

Words: 821 - Pages: 4

Free Essay

Hbs Case Bmw

...HBS CASE: BMW FILMS 11/11/13 S. Kursat Sornaoglu 012541488 1. How fit is the BMW brand at the time of the case? Are there any reasons to anticipate undesirable financial performance in the future? BMW is well fit and is able to sell it's products easily. There is no reason to anticipate any financial problems. 2. What is BMW’s unique selling proposition? Describe a typical BMW’s target customer and how the company’s products fulfill his needs. They sell the world's most exciting luxury cars which are the ultimate driving machines. A typical BMW customer is a highly educated individual in late 40s with a high income. They are usually married but don't have children. They are hard workers and they don't have spare time. The time they spend on driving is the most pleasurable time in their day. Therefore they want this time to be as enjoyable and comfortable as possible. 3. Using research findings presented in the exhibits (especially Exhibit 11), perform a critical evaluation of the effectiveness of BMW films in attracting potential customers to the brand. Median age and the, age segments who watched this video a lot is not the described core customers of the company. So it is sure that these videos reached out to people who are not the customers of BMW. 84% of the viewers aren't BMW customers and they recommend the video to others. These aspects shows us that the videos definitely caught the attention of the targeted group. Their 88k income level is a good indication showing......

Words: 824 - Pages: 4

Premium Essay

Hbs Case

...U.S. May Be at Risk,” Los Angeles Times, January 14, 2004, p. A7. George Melloan, “Asia’s Tigers Are Back, with More Muscle,” Wall Street Journal, June 1, 2004, p. W1. Keith Bradsher, “Chinese Provinces Form Regional Economic Bloc,” New York Times, June 2, 2004, p. W1. Walden Bello, “Perspective: Asia and China,” BusinessWorld, April 19, 2004, p. 1. “WTO to Allow Access to Cheap Drug Treatments,” Los Angeles Times, August 31, 2003, p. A4. “Business: Getting Africa Moving; Face Value,” Economist, April 17, 2004, p. 72. and Management Researchers,” Journal of World Business 34, no. 1 (1999), pp. 97–98. 6. John Child and David K. Tse, “China’s Transition and Its Implications for International Business,” Journal of International Business Studies, First Quarter 2001, pp. 5–21. 7. Rebecca Buckman, “China Keeps Telecom Firms Waiting on 3G,” Wall Street Journal, May 13, 2004, p. B4. 8. John Gilbert and Thomas Wahl, “Labor Market Distortions and China’s WTO Accession Package: An Applied General Equilbrium Assessment,” Journal of Comparative Economies 31, no. 4 (December 2003), p. 774. 9. Robyn Meredith, “So You Really Want to Do Business in China?” Forbes, July 24, 2000, p. 93. 10. David Ignatius, “A ‘Maggie Moment’ in Europe,” Washington Post, July 13, 2003, p. A29. 11. Therese Raphael, “London Letter: Europe’s Great Reform Wimpout,” Wall Street Journal, January 26, 2004, p. A15. 12. Keith B. Richburg, “Spanish Socialists Oust Party of U.S. War Ally—Voters Cite Train Attacks in......

Words: 20606 - Pages: 83

Premium Essay

Hbs Case

...HBS Case-SYSCO 1. Why does SYSCO need BI? SYSCO needs Business Intelligence to increase efficiency by organizing information generated by its operations. SYSCO has two different divisions, the broad-line companies and the specialty companies, which have separated profit and loss statements. With the use of BI, people can easily access the statements between these different divisions. There is a lack of consistency between part numbers, customer identifications, order statuses, and other important information which makes it difficult for managers to monitor and compare performance. 2. How can SYSCO take advantage of BI? Business Intelligence can be advantageous to SYSCO by providing statistical analysis, graphical representations and access to important data. With the use of dashboards, users at every level can easily access summaries of important information. BI software can combine data from separate warehouses and databases to help managers make better business decisions. With all the information centralized, managers save time when accessing other divisions’ databases. BI uses data mining to automatically sort through large pools of data to determine trends and patterns that could have otherwise been overlooked by managers. 3. What are the potential obstacles? The potential obstacle of Business Intelligence implementation is determining how much software to buy and when to buy it. SYSCO needs to determine the correct balance of software with the current......

Words: 349 - Pages: 2

Premium Essay

Hbs Case Study

...opportunities using the knowledge and skills acquired from the previous subject. Class members will consider business planning, self-assessment, idea generation, and operating strategies required to start a new small business. Students will also be exposed to Harvard Business School Case Method in order to give them exposure to the real world problems and their solutions. Active participation by students during class discussions and activities is encouraged & expected. Students successfully completing this course will be able to: * Research, recognize and access business opportunities. * Use analytical and critical thinking skills to determine the feasibility of a business concept. * Gained hands on experience with conducting research, develop, write, evaluate, presenting and defending segments of a business plan. | | Learning Outcomes | At the end of the semester, the student will have the: | CO | Course Outcomes | Related Program Outcome (PO) | Evaluation Method | 1. | Ability to think and analyze critically and creatively in order to solve real world problem | PO5 (C4) | HBS (50), A(50) | (HBS-Havard Business Casestudy; PR – Project; Q – Quiz; A – Assignment; CS – Case Study; Prs – Presentation; FA – Final Exam) | | Student Learning Time | Teaching and Leaning Activities | Student Learning Time (Hours) | Face to Face Learning | Lecturer centered | Lecture | 14 | | Student centered | Practical/Lab/Tutorial | - | | | Student......

Words: 610 - Pages: 3

Premium Essay

Enron Hbs Case Study

...department members. In such a competitive environment, this type of system can lead employees to rank peers lower than themselves to protect their own job. This seemingly self-centered, individualistic corporate culture is causing employees to act in ways that defend and preserve themselves, rather than create value for shareholders, which is what a public company should strive to do. The energy at Enron is focused in the wrong areas as employees seem to do whatever is necessary to stay “alive”. Although Skilling was the one at the forefront when the Enron ship began to sink, the presence of many strong players all competing for individual power within the organization attributed to Enron’s downfall. Although Skilling came in fresh out of HBS ready to aggressively hit the ground running, it seems as higher management at the time, namely Lay, did not have the foresight to control him. They say him as an invaluable asset, and rewarded him with promotions and bonuses, which only increased his ego and made him think that he deserved the top positions. He should not have been given such an easy ride to the top, but management liked his willingness to try new things and take risks. They also liked this trait in Marks, who ended up racking up significant losses in her International department due to unrecognized losses. However, because of her convincing way of presenting her ideas and implementing them in an aggressive, “go-getter” type of way, she was able to proceed on her......

Words: 576 - Pages: 3

Premium Essay

Hbs Martha Steward Case

...HBS Martha Steward Case Assignment Questions 1. In what ways did Stewart’s control of shareholder voting rights disrupt the functioning of the board? How did her control of the board interfere with directors’ carrying out their fiduciary duties? Stewart highly influenced and controlled all aspects of the company and board of directors. Because Stewart was the founder, major shareholder, and the face of the company it was difficult to bypass her demands and have a fully functional board. The name of the company itself was Martha Steward Living Omnimedia and at the end of the day the firm was founded on her image and work. On top of that, having over 90% of the shareholder voting rights and a big ego proved to be detrimental to the company’s well being. No matter what the board would advise or how good the vision of new CEO’s were she would always decline their plans and eventually make them resign. Furthermore, she appointed most of the board members. Just to name a few people, CEO Sharon Patrick was someone she met on a hiking trip to Kilimanjaro, Frederic Fekkai on the board was Martha’s hairdresser, Charlotte Beers and Michael Goldstein were also appointed by Martha. By her having the most control and appointing a board that back her up no matter what left many executives who wanted to make changes with their hands tied. 2. What changes in the makeup of the board would have improved governance? Had there been a more diverse group that was searched for by......

Words: 1718 - Pages: 7

Premium Essay

Hbs Case

...The HBS Case Method Pioneered by HBS faculty and one of the highlights of the HBS experience, the case method is a profound educational innovation that presents the greatest challenges confronting leading companies, nonprofits, and government organizations—complete with the constraints and incomplete information found in real business issues—and places the student in the role of the decision maker. There are no simple solutions; yet through the dynamic process of exchanging perspectives, countering and defending points, and building on each other's ideas, students become adept at analyzing issues, exercising judgment, and making difficult decisions—the hallmarks of skillful leadership. Page Content Over 80 percent of cases sold throughout the world are written by HBS faculty, who produce approximately 350 new cases per year. Simply put, we believe the case method is the best way to prepare students for the challenges of leadership. How the HBS Case Method Works When students are presented with a case, they place themselves in the role of the decision maker as they read through the situation and identify the problem they are faced with. The next step is to perform the necessary analysis—examining the causes and considering alternative courses of actions to come to a set of recommendations. To get the most out of cases, students read and reflect on the case, and then meet in learning teams before class to "warm up" and discuss their findings with other classmates. In......

Words: 389 - Pages: 2

Premium Essay

Papa John Hbs Case Study

...Case Assignment 1: Papa John’s International, Inc.: Twenty-First Century Growth Challenges Inverted broom closet in a hometown lounge. He called it Papa John’s. Today, there are over 2,500 locations across the North America, South America, Africa, Europe and Asia. While Papa John’s has done a very good job with their forward thinking strategies, there are still some avenues to be explored to keep them competing as one of the world’s best pizza chains. During the first year of the company’s inception, John was able to grow his business from one store to eight, and generate $500,000 in revenue. While Papa John’s may not have had true first movers advantage (Pizza Hut opened in 1958), they did have a distinct advantage when it came to product differentiation. Papa John’s prided themselves on “better ingredients” making a better pizza, which is something they stand by to this day. This selling point is what gave them an advantage over the likes of Pizza Hut, or Dominoes (est. 1967), and made it possible for them to enter the market. One of the early strategic moves made by John was to implement a hub-and-spoke type “commissary” (or quality control center) that was responsible for delivering ingredients, supplies, and dough to a number of stores in the surrounding geographic location. This allowed John to ensure the quality of the food being served. These centers were key to early expenditure and quality control, but would be hard to sustain in future expansion due to......

Words: 1707 - Pages: 7

Premium Essay

Nfl Hbs Case Study

...NFL Case Study 1. Discuss the factors that have resulted in the NFL becoming “America’s Game” and the most popular sport in the country? The fundamental reason for NFL becoming “America’s Game” and the most popular sport in the country is because the NFL was able to market the sport as an entertainment business. Leveraging television and the fact that American football was only played in America, the NFL was able to create a “holiday” feel that was unique and that American’s took pride in, as a result paid more attention to the sport. Another contributing factor was to control the quality of the product. Making sure that each team had the resources to perform professionally and one team could not gain absolute advantage was crucial to maintaining a competitive parity. To do this the NFL implemented controlling cost and revenue sharing, in which the lowest earning team could compete with the highest earning team. 2. Explain the dynamics behind the competitive balance in the NFL versus other U.S. based properties as well as other leagues globally. The NFL has two methods of maintaining parity. Amongst the teams, the NFL uses revenue sharing in three ways: “1. National Revenue Sharing: All national revenue was pooled and split evenly between the teams at the end of the year. 2: Gate Revenue Sharing: Visiting team share was pooled and split evenly. Supplemental revenue sharing: focusing on teams’ local income, teams with higher local revenues transferred a......

Words: 1497 - Pages: 6

Premium Essay

Facebook Hbs Case Study

...Facebook Case Write-up Format: Name(s) on one-line header in upper right-hand corner (double clicks on the current header for editing), 1” margins all around, single-spaced with one blank line between paragraphs, block format (no indenting for paragraphs). Use bold internal headings to mark sections. (This page conforms to these format requirements.) PLEASE LIMIT THIS ASSIGNMENT TO 2 PAGES. Make your responses succinct and meaningful. Preparation: Read the Facebook case (which can be purchase following the link provided in the course outline). For any terms that you do not understand in the case or in this assignment sheet, please read the related slides and/or search online and get them clear. Content: Please answer the following questions, using information from the case. Be SPECIFIC and use BULLET POINTS whenever possible. 1. Why do people use Facebook and what do they do when they are there? Facebook is a social networking service launched in February 2004, owned and operated by Facebook, Inc. As of October 2012, Facebook has over one billion active users, more than half of them using Facebook on a mobile device. Users must register before using the site, after which they may create a personal profile, add other users as friends, and exchange messages, including automatic notifications when they update their profile.  Facebook can be mainly used to socialize, keep in touch with real life friends or renew old connections. Facebook provides......

Words: 1112 - Pages: 5

Premium Essay

Hbs Case Study: “Fixing Internal Team Studies”

...reputation for producing mid-priced, basic ice cream sold mainly in grocery stores. In the four years prior to the Case Study, the Ice Cream Division had experienced some rather drastic changes. Charles Moore, who was the grandson of the founder, took over as new President and General Manager. As well, three of the seven members of the top management team had recently departed and, in a drastic change for production personnel, the oldest plant was closed and production was consolidated into two newer plants. Roots of the Problem Each of these changes seems to have placed some stress on the system and climate of the company and, at the time of the Case Study, the company’s previous level of profitability and market performance had not yet returned. Exhibit 3 showed, graphically, that the bottom line (operating profit) was dropping more steeply than the top line (sales revenue). They appeared to be becoming less efficient as well as less effective. These recent changes the company had been experiencing, especially the recent management team and leadership turnover, were root causes of many of the company’s problems that were outlined in the case study. The team appeared to have not quite reached a point of comfort, trust and effective teamwork with each other and, although the recent loss of a large grocery store account was presented as the main problem in the Case Study, the loss of the account was a symptom and not the cause of the problem, the management team’s......

Words: 923 - Pages: 4

Premium Essay

Hbs Case

...In a few cases, leases are contracts by which the lessor transfers the right to use its asset to the lessee against the periodic rentals. There are major two types of lease according to the IAS 17: Finance and Operating Lease. Under the previous IAS 17 “Leases” by International Accounting Standards Board (IASB), in operating lease, the lessee does not need to recognize the leased asset in their balance sheet. In 2010, August, the International Accounting Standards Board issued an Exposure Draft (ED), amending various changes to the IAS 17. The effect of the new ED was that lessees would have to recognize a “right-to-use asset” and a lease liability in term of lease interest for their long and short term leases in the balance sheet. On the other hand, “right-of-use” asset would be amortized against the basis of the lease term or the life of the leased asset, whatever is shorter. Since the BonneSante is engaged in operating lease agreements with their lessors that gives them a “right-of-use” of retail outlets and trucks. Since, the revised ED states that the contracting parties must agree on at least 10 years lease term, so the BonneSante must cancel out their lease agreements which are less than 10 years lease term and revise them as per the new requirements. The lessee shall report cash payments against the lease payments as financing activity in the statement of the cash flows but should be separate from other financing activities....

Words: 252 - Pages: 2

Proposer une amélioration | Kanchigai Hime to Usotsuki Shimobe | Скачать APK