What does the case teach about strategies that enterprises must adapt to in a competitive market?
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Vizio and the Market for Flat Panel TVs Operating sophisticated tooling in environments that must be kept absolutely clean, fabrication centers in South Korea, Taiwan, and Japan produce to exacting specifications sheets of glass twice as large as kingsize beds. From there, the glass panels travel to Mexican plants located alongside the U.S. border. There they are cut to size, combined with electronic components shipped in from Asia and the United States, assembled into finished flat panel TVs, and loaded onto trucks bound for retail stores in the United States, where consumers spend over $35 billion a year on flat panel TVs.
The underlying technology for flat panel displays was invented in the United States in the late 1960s by RCA. But after RCA and rivals Westinghouse and Xerox opted not to pursue the technology, the Japanese company Sharp made aggressive investments in flat panel displays. By the early 1990s Sharp was selling the first flat panel screens, but as the Japanese economy plunged into a decade-long recession, investment leadership shifted to South Korean companies such as Samsung. Then the 1997 Asian crisis hit Korea hard, and Taiwanese companies seized leadership. Today, Chinese companies are starting to elbow their way into the flat panel display manufacturing business.
As production for flat panel displays migrates its way around the globe to low-cost locations, there are clear winners and losers. U.S. consumers have benefited from the falling prices of flat panel TVs and are snapping them up. Efficient manufacturers have taken advantage of globally dispersed supply chains to make and sell low-cost, high-quality flat panel TVs. Foremost among these has been the California-based company Vizio, founded by a Taiwanese immigrant. In just six years, sales of Vizio flat panel TVs ballooned from nothing to over $3.1 billion by 2013. In early 2009, the company was the largest provider to the U.S. market with a 21.7 percent share. Vizio, however, has fewer than 500 employees. These focus on final product design, sales, and customer service. Vizio outsources most of its engineering work, all of its manufacturing, and much of its logistics. For each of its models, Vizio assembles a team of supplier partners strung across the globe. Its 42-inch flat panel TV, for example, contains a panel from South Korea, electronic components from China, and processors from the United States, and it is assembled in Mexico. Vizio's managers scour the globe continually for the cheapest manufacturers of flat panel displays and electronic components. They sell most of their TVs to large discount retailers such as Costco and Sam's Club. Good order visibility from retailers, coupled with tight management of global logistics, allows Vizio to turn over its inventory every three weeks, twice as fast as many of its competitors, which allows major cost savings in a business where prices are falling continually. On the other hand, the shift to flat panel TVs has caused pain in certain sectors of the economy, such as those firms that make traditional cathode ray TVs in high-cost locations. In 2006, for example, Japanese electronics manufacturer Sanyo laid off 300 employees at its U.S. factory, and Hitachi closed its TV manufacturing plant in South Carolina, laying off 200 employees. Sony and Hitachi both still make TVs, but they are flat panel TVs assembled in Mexico from components manufactured in Asia.
In: Economics
Exercise 8-10 Production and Direct Materials Budgets [LO8-3, LO8-4]
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 20,250 units.
The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 111,375 cc of solvent H300.
The company maintains no work in process inventories.
A monthly sales budget for Supermix for the third and fourth quarters of the year follows.
| Budgeted Unit Sales | |
| July | 73,000 |
| August | 78,000 |
| September | 88,000 |
| October | 68,000 |
| November | 58,000 |
| December | 48,000 |
Required:
1. Prepare a production budget for Supermix for the months July, August, September, and October.
3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
In: Accounting
Exercise 7-10 Production and Direct Materials Budgets [LO7-3, LO7-4]
|
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: |
| a. |
The finished goods inventory on hand at the end of each month must be equal to 2,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 11,250 units. |
| b. |
The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 57,375 cc of solvent H300. |
| c. | The company maintains no work in process inventories. |
| A sales budget for Supermix for the last six months of the year follows. |
| Budgeted
Sales in Units |
|
| July | 37,000 |
| August | 42,000 |
| September | 52,000 |
| October | 32,000 |
| November | 22,000 |
| December | 12,000 |
| Required: | |
| 1. |
Prepare a production budget for Supermix for the months July, August, September, and October. |
| 3. |
Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. |
In: Accounting
Huxley (60) and Elise (45) started the process on adopting Elwood (15) on May 1, 2020. On July 6, 2020, Huxley took a $5,000 distribution from his 401(k). On September 24, 2020, Elise took a $5,000 distribution from her IRA. What is the tax treatment of each distribution?
Huxley's distribution is taxable and not subject to the early distribution penalty. Elise's distribution is taxable and subject to the early distribution penalty.
Huxley's distribution is not taxable or subject to the early distribution penalty. Elise's distribution is taxable and subject to the early distribution penalty.
Huxley's distribution is taxable and not subject to the early distribution penalty. Elise's distribution is taxable and not subject to the early distribution penalty.
Huxley's distribution is taxable and subject to the early distribution penalty. Elise's distribution is taxable and not subject to the early distribution penalty.
In: Accounting
4. Use Table II below to estimate costs for a company.
|
Reporting Period (Month) |
Total Production Costs |
Level of Activity (Units Produced) |
|
January |
$460,000 |
300 |
|
February |
300,000 |
220 |
|
March |
480,000 |
330 |
|
April |
550,000 |
390 |
|
May |
570,000 |
410 |
|
June |
310,000 |
240 |
|
July |
440,000 |
290 |
|
August |
455,000 |
320 |
|
September |
530,000 |
380 |
|
October |
250,000 |
150 |
|
November |
700,000 |
450 |
|
December |
490,000 |
350 |
Table II
4a. Plot the level of production and cost data for each period. Insert a trend line and display the R2 in the plot. Attach the plot to this assignment.
4b. Estimate the fixed and variable costs of production, and the total cost function using simple linear regression.
4c. Evaluate the model’s goodness of fit for cost estimation
4d. Estimate the total cost of producing 400 units and the 95% confidence interval of the estimation.
In: Finance
Blackgold Coal: Then and Now
In the early 1990s, Blackgold Coal, the largest Australian producer of premium-quality coal, mainly exported to China. Despite being the largest producer of coal, Blackgold still struggled to fulfil Chinese coal demand. However, in the late 1990s, the demand for coal in China dramatically dropped due to China’s rapid industrialisation that instead began relying on alternative power sources. This reduced demand from China caused Blackgold to make losses from its main market base. To add to this, all coal miners in Australia have been facing bans on mining expansion at home due to its environmental impacts. Hence, Blackgold explored the alternative markets and began to export to Asia, Africa, the Middle East and Latin America, which were still using coal as a prime power source for their industrialisation.
Blackgold’s strategy to diversify their coal markets paid off. By the late 1990s its revenue increased by 200% because of demand for its high-quality coal. Multinational operations, however, meant that Blackgold has faced increasingly fierce competition from other coal-rich countries since the mid-2000s. In response, Blackgold acquired the largest coal producers in Asia and Africa, entered into long-term trade deals with its major Asian and the Middle Eastern buyers by cutting prices, and entered into joint venture and strategic alliances in Latin America. Price cuts were possible because of cheap labour in Asia and Africa and the coal mines that were newly discovered by Blackgold in Africa and Latin America. Blackgold benefitted from its overseas production base as well as increased demand for premium-quality coal. By 2010, Blackgold became the number one coal producer around the world and was undefeated by its competitors, but succumbed to the protests from environmentalists around the world. In response, today Blackgold has to spend on the garden restoration, reforestation and afforestation, skill development, employee well-being and local community development.
After reading this case, you are required to answer the following questions:
i) What were Blackgold’s reasons for going global and what key factors have contributed to globalisation?
ii) Has Blackgold received any benefit from its global operations, if so, what are those?
ii) Has Blackgold faced any threat from its global operations, if so, what are those?
In: Economics
Problem Solving: Please answer the following problems showing your solutions, Double Rule and Encircle Final Answers. This must be done thru your handwriting placed in a Bond Paper. THANKYOU!!!
1. On July 1, 2019 J Corp acquired a machinery worth Php 2,500,000 from D Co. Term of the contract calls for a downpayment of Php 500,000 and signing a 2 year 10% note payable for the balance. Interest is payable quarterly. The existing loan agreement does not carry a provision to refinance. During September, J Corp was experiencing financial difficulty due to COVID-19 and was unable to pay the periodic interest. a. What amount of current liability should J Corp report in its December 31, 2019 balance sheet assuming D Co. agreed at balance sheet date not to demand payment as a consequence of the breach? b. What amount of current liability should J Corp report in its December 31, 2019 balance sheet assuming D Co. agreed to provide a grace period ending at least twelve months to rectify the breach?
2. A truck owned and operated by B Company was involved in an accident with an auto driven by Julia on January 12, 2019. B Company received notice on April 24, 2019 of a lawsuit for Php 800,000 damages for a personal injury suffered by Julia. B Company counsel believes it is reasonably possible that Julia will be successful against the company for an estimated amount in the range between Php 100,000 and Php 400,000. No amount within this range is a better estimate of potential damages than any other amount. It is expected that the lawsuit will be adjudicated in the latter part of 2020. What amount of loss should B Company accrue at December 31, 2019?
3. In November and December of 2020, adventure Company received Php 792,000 for 1,000, 3 year subscriptions at Php 264 per issue per year, starting with the January 2006 issue. adventure elected to include the Php 792,000 in its 2020 income statement for tax purposes. What amount should advneture report in its 2020 balance sheet as unearned subscription revenue?
4. In November and December 2020, Sweet Company, a newly organized magazine publisher, received Php 72,000 for 1,000 three year subscriptions at Php 24,000 per year, starting with the November 2020 issue of the magazine. Sweet elected to include the entire Php 72,000 in its 2020 income tax return. How much should Sweet report in its 2020 balance sheet as unearned subscriptions?
5. During 2019, S Company sold 500,000 boxes of hotcakes under a new sales promotional program. Each box contains one coupon, which when submitted with Php 16, entitles the customer to a baking pan. S Company pays Php 20 per pan and Php 2 handling and shipping. S Company estimates that 80% of the coupons will be redeemed, even though only 300,000 coupons had been processed during 2019. What amount should S Company report as liability for unredeemed coupons at December 31, 2019?
In: Accounting
If a cost is a common cost of the segments on a segmented income statement, the cost should:
| not be allocated to the segments. |
| be excluded from the income statement. |
| be treated as a product cost rather than as a period cost. |
| be allocated to the segments on the basis of segment sales. |
.
Anderson Corporation has two major business segments-North and South. In July, the North business segment had sales revenues of $220,000, variable expenses of $125,000, and traceable fixed expenses of $29,000. During the same month, the South business segment had sales revenues of $890,000, variable expenses of $472,000, and traceable fixed expenses of $169,000. The common fixed expenses totaled $246,000 and were allocated as follows: $123,000 to the North business segment and $123,000 to the South business segment.
The contribution margin of the South business segment is:
In: Accounting
Oct.1: Purchased additional office supplies on account from Paper Co., $850. Oct.2: Paid Chicago times advertising bill for September, $900. Oct. 3: Sold a house to Helen Baker and collected a commission of $7,300. Oct. 6: Paid gas bill to Haffner Gas Co., $29. Oct. 8: Collected commission from Tropic Developers for sale of building lot on September 17, $10,000. Oct. 12: Paid $530 to Long Realtors Assoc. to send employees to realtors' workshop. Oct. 15: Paid Rosie Petrillo, office secretary, $300. Oct. 17: Sold a house to Gary Schneider and earned a commission of $2,900. Commission to be received on November 10. Oct. 18: Sold a building lot to Lombardi Builders and collected a commission of $4,500. Oct. 22: Sent a check to Heritage Charities for $65 to help sponsor a local road race to aid the poor. (This amount is not to be considered an advertising expense; it is a business expense and is posted to Miscellaneous Expense.) Oct. 24: Paid Hyundai North $620 for repairs to automobile due to accident. Oct. 28: James Sousa withdrew $2,200 from the business to pay personal expenses. Oct. 30: Paid Rosie Petrillo, office secretary, $300. Oct. 30: Paid Comcast telephone bill, $480. Oct. 30: Advertising bill from Chicago Times for October, $1,300. The bill is to be paid on November 2. Required Work for October: 1. Journalize transactions in a general journal (p.4) and post to ledger accounts. 2. Prepare a trial balance in the first two columns of a blank, fold-out worksheet located at the end of your textbook at the end of your textbook and complete the worksheet using the following data: a) One month's rent had expired. Paid 5 months' rent in advance on September 1, $1,000. b) An inventory shows $130 of office supplies remaining. c) Depreciation on office equipment, $160. d) Depreciation on automobile, $210. 3. Prepare an October income statement, statement of owner's equity, and balance sheet. 4. From the worksheet, journalize and post adjusting and closing entries (p. 6 of journal). 5. Prepare a post-closing trial balance. Please Help!!!
In: Accounting
List all files and directories in the current directory and store in a variable called malf.
Count how many lines end with your firstname in the file /etc/conf
Explain this command: mv pmu*.[ab] cces/
Quick help in 5 min pleases with the UNIX program!
I want only the final answer
In: Computer Science