How E-bay failed in China? Sep 12, 2010 By Helen H.Wang and China Tracker This weekend, eBay’s CEO John Donahoe shared the stage with Alibaba’s maverick founder Jack Ma at his annual Alifest conference in Hangzhou, China. Gady Epstein, Forbes Beijing bureau chief, has an intriguing blog post about how Donahoe wished a happy birthday to Jack Ma who not only defeated eBay in China, but also “encroaches on eBay’s home turf.” Since Epstein referenced my recounting of the eBay-Alibaba battle, I thought it might serve readers well to provide an excerpt here from my book The Chinese Dream: In 2004, eBay had just entered China and was planning to dominate the China market. Alibaba was a local Chinese company that helped small- and medium-sized enterprises conducting business online. Most people in the West had barely heard about it. When eBay entered the China market, Jack Ma, founder and CEO of Alibaba, was alarmed that “someday, eBay would come in our direction.” He knew too well that there was no clear distinction between small businesses and individual consumers in China. As a defensive strategy, Ma decided to launch a competing consumer-to-consumer (C2C) auction site, not to make money, but to fend off eBay from taking away Alibaba’s customers. A new Web site named Taobao—meaning “digging for treasure”—was launched free of charge for individuals buying and selling virtually any consumer goods, from cosmetics to electronic parts. In 2004, I visited Alibaba at its headquarters in Hangzhou. It is located on a campus of three ten-story buildings in the northeastern part of Hangzhou, about a ten-minute taxi drive from West Lake. In the lobby, a flat panel TV was streaming video clips of Jack Ma speaking at various public events where his admirers, most of them in their twenties, were cheering him like a rock star. While visiting Alibaba’s headquarters in Hangzhou, I felt the same “insanely great” energy of entrepreneurship as I felt in Silicon Valley. When I asked a senior manager at Alibaba whether the company was worried that it would be bought by eBay, I was blown away by the answer: “We will buy eBay!” EBay, on the other hand, began its most aggressive campaigns to dominate the market and thwart competitors. Soon after Taobao was launched, eBay signed exclusive advertising rights with major portals Sina, Sohu, and Netease with the intention of blocking advertisements from Taobao. In addition, eBay injected another $100 million to build its China operation, now renamed “eBay EachNet,” and was spreading its ads on buses, subway platforms, and everywhere else. Ma fought back cleverly. Knowing that most small business people would rather watch TV than log on to the Internet, Ma secured advertisements for Taobao on major TV channels. In 2004, one could easily feel the heat of fierce competition between eBay EachNet and Taobao. When I was taking a taxi in Shanghai, I noticed the ads of eBay EachNet on the back of the driver’s seat; when I checked into my hotel, I heard the ads for Taobao popping up on TV almost every half hour. Since its name means “digging for treasure” in Chinese, it attracted a lot of attention by a smart play on words. While most people in the West had never heard of Taobao, its name was heard loud and strong in China. Nevertheless, most industry observers were suspicious about Taobao’s future, particularly its sustainability. Unlike eBay EachNet, which charged its sellers for listing and transaction fees, Taobao was free to use. Neither Ma nor any members from the management team gave a definite timeline as to how long this “free period” was going to last. “Free is not a business model,” the doubters said. Some thought Ma was crazy and nicknamed him “Crazy Ma.” No doubt Crazy Ma was changing the game. Taobao got a quick start with its free listings and continued to gain momentum as more and more users switched from eBay EachNet to Taobao. According to a Morgan Stanley report, Taobao was more customer focused and user friendly than eBay EachNet. With most users not sophisticated about auctions, the majority of Taobao’s listings were for sales. Only 10 percent of its listings were for auctions, while eBay EachNet had about 40 percent of its listings for auctions. Taobao had also better terms for its customers: it offered longer listing periods (fourteen days) and let customers extend for one more period automatically. EBay EachNet did not have this flexibility. Taobao’s listings appeared to be more customer-centric while eBay EachNet’s listings more product-centric. For example, Taobao’s listings were organized into several categories, such as “Men,” “Women,” and so on, while eBay EachNet stuck to its global platform, grouping users into “Buyers” and “Sellers.” At that time, China had about three hundred million cell phone users versus ninety million Internet users. Taobao offered instant messaging and voice mail to mobile phones for buyers and sellers because Chinese users were cell-phone savvy rather than computer savvy. It was clear that Taobao had an upper hand against its global counterpart because it really understood Chinese customers. As a result, Taobao had higher customer satisfaction than eBay EachNet. According to iResearch, a Beijing-based research firm, the user satisfaction level was 77 percent for Taobao versus 62 percent for eBay EachNet. The experience of competing with eBay gave Ma tremendous confidence. He was determined to win: “eBay may be a shark in the ocean, but I am a crocodile in the Yangtze River. If we fight in the ocean, we lose—but if we fight in the river, we win.” By March 2006, Taobao had outpaced eBay EachNet and became the leader in China’s consumer-to-consumer (C2C) market, with 67 percent market share in terms of users, while eBay EachNet had only 29 percent market share. “The competition is over,” Ma exclaimed. “It’s time to claim the battlefield.” On December 20, 2006, Meg Whitman, eBay's then CEO, flew to Shanghai to take part in a press conference to announce a new joint venture with Beijing-based Internet portal Tom Online, which provides wireless value-added multimedia services. It was, in reality, a formal announcement of eBay’s withdrawal from the online auction market in China. EBay shut down its China site, eBay EachNet, and took a back seat to a company with only $173 million in revenue and no experience in the online auction business. Jack Ma represents a new generation of savvy Chinese competitors who should not be underestimated. They study their markets and bring to bear their local knowledge. They learn from their competition and from their own mistakes as they move up the competitive landscape. The case of Alibaba provides an invaluable lesson for multinationals to succeed in China market: First, eBay failed to recognize that the Chinese market and the business environment are very different from that of the West. EBay sent a German manager to lead the China operation and brought in a chief technology officer from the United States. Neither one spoke Chinese or understood the local market. It was eBay’s biggest mistake. Second, because the top management team didn’t understand the local market, they spent a lot of money doing the wrong things, such as advertising on the Internet in a country where small businesses didn’t use the Internet. The fact that eBay had a strong brand in the United States didn’t mean it would be a strong brand in China. Third, rather than adapt products and services to local customers, eBay stuck to its “global platform,” which again did not fit local customers’ tastes and preferences.
Retrieved from: https://www.forbes.com/sites/china/2010/09/12/how-ebay-failed-in-china/#b53cbc35d57a
Question 1:
a) To enter the Chinese market, Ebay spent a lot on advertising yet it failed. What was the problem with their advertising strategy?
b) At its start, what strategy helped Taobao gain more customers than ebay?
c) Certainly, entering a foreign market with a large capital is important, but does it guarantee success?
d) Many other foreign companies failed in China although they were successful in their home countries. Amazon’s failure in China is a very recent example. What are the reasons behind their failure?
e) What are your recommendations for businesses wanting to enter the Chinese market?
In: Finance
DULT : Génie Electrique et Informatique Industrielle Introduction to Finance (ITF) Assignment No 1 David Denton set up in business as a plumber a year ago, and he has asked you to act as his accountant. His instructions to you are in the form of the following letter: Dear Henry, I was pleased when you agreed to act as my accountant and look forward to your first visit to check my records. Your proposed fee of £250 per year is acceptable. I regret that the paperwork for the work done during the year is incomplete. I started my business on 1 January 2005, and put £6500 into a business bank account on that date. I brought my van into the firm at that time, and reckon that it was worth £3600 then. I have drawn £90 per week from the business bank account during the year. In my trade it is difficult to take a holiday, but my wife managed to get away for a while. The travel agent’s bill for £280 was paid out of the business account. I bought the lease of the yard and office for £6500 on 1 April. I borrowed £4000 on that day from Aunt Jane to help pay for the lease. I have agreed to pay her 10% interest per annum, but have been too busy to do anything about this yet. I was lucky enough to meet Miss Prism shortly before I set up on my own, and she has worked for me as an office organizer right from the start. She is paid a salary of £3000 per year. All the bills for the year have been carefully preserved in a tool box, and we analysed them last week. The materials I have bought cost me £9600, but I reckon there was £580 worth left in the yard on 31 December. I have not yet paid for them all, I think we owed £714 to the suppliers on 31 December. I was surprised to see that I had spent £4800 on plumbing equipment, but it should last me five years or so. Electricity bills received up to 30 September came to £1122, but motor expenses were £912, and general expenses £1349 for the year. The insurance premium for the year up to 31 March 2006 was £800. Miss Prism sent out bills to my customers for work done, but some of them are very slow to pay. Altogether the charges made were £29863, but only £25613 had been received by 31 December. Miss Prism thinks that 10% of the remaining bills are not likely to be paid. Other customers for jobs too small to bill have paid £3418 in cash for work done, but I only managed to bank £2600 of this money. I used £400 of the difference to pay the family’s grocery bills, and Miss Prism used the rest for further general expenses, except for £123 which was left over in a drawer in the office on 31 December. Kind regards, Yours sincerely, David. You are required to draw up a Profit and Loss Account for the year ended 31 December 2005, and a Balance Sheet as at that date.
Could you show calculations for only general expenses???????
In: Accounting
Java program. The Spacely Sprocket company has expanded operations and is now producing 50 different kinds of sprockets. The different sprockets are numbered 1 though 50. During the month of November, orders have been taken for the different sprockets. The following input file contains records where each record contains a sprocket number (1-50) followed by the quantity ordered: November Orders.txt (this will be at the bottom)
Using the below input file of orders, rewrite the Spacely Sprocket program to produce a summary report for all 50 sprockets produced. Rather than using 50 separate accumulator variables, you must use a single array to represent the 50 different accumulators. Use the array and loops in your program to summarize the orders and output the report. Don't forget to initialize each of the array locations to 0 (because they are accumulators). For full credit, be sure to display the report in a Scrolling Pane in a Window.
November_Orders.txt (below)
38 53 3 17 29 69 42 2 30 88 31 76 6 84 33 30 42 38 37 96 17 67 37 32 23 88 4 63 10 93 33 47 17 59 39 48 34 44 13 49 50 84 13 59 19 100 20 91 43 70 41 25 11 85 47 100 23 70 34 72 25 37 26 50 39 63 14 3 45 63 8 85 27 3 25 89 6 20 40 70 16 99 28 57 21 21 41 6 38 21 26 12 7 52 35 13 47 65 34 36 38 60 9 92 18 6 13 46 32 44 14 6 16 19 11 12 45 58 28 42 10 64 10 61 17 4 5 47 39 53 34 25 26 87 8 49 14 46 50 96 4 42 31 4 20 46 49 6 5 73 26 39 1 88 47 48 6 48 23 65 22 45 29 97 47 48 18 94 22 95 8 99 26 75 13 85 25 21 28 42 25 39 47 91 48 36 21 25 4 6 19 88 46 60 22 83 31 62 38 18 4 92 25 45 29 28 5 59 2 38 50 21 15 42 46 15 37 13 49 57 24 73 37 90 34 13 30 91 9 44 34 84 27 21 48 8 50 84 15 26 16 9 38 86 28 29 37 30 36 30 47 51 30 41 3 54 36 29 12 11 8 18 33 69 35 10 34 36 37 11 27 98 6 39 5 82 22 84 10 63 42 65 14 95 15 59 24 57 42 94 25 44 35 50 26 30 21 57 11 53 4 80 18 48 28 35 26 48 33 20 22 76 43 48 27 32 47 4 34 88 1 21 27 46 42 9 35 100 19 80 3 93 8 5 45 85 14 39 37 33 20 8 48 24 34 78 43 56 18 92 11 76 18 44 5 15 43 51 50 100 8 94 23 64 32 8 40 54 36 81 32 31 11 17 37 35 7 61 26 31 15 2 2 59 43 37 5 86 48 30 14 91 29 7 16 24 36 14 15 56 42 67 35 50 20 93 40 14 45 67 23 37 48 31 19 67 43 59 33 62 6 30 31 31 9 53 29 94 17 62 38 1 46 77 25 1 23 52 45 74 29 28 11 43 43 73 31 32 20 26 13 64 15 30 35 76 4 36 34 88 31 50 15 78 36 7 28 9 45 3 28 92 17 40 3 1 47 20 39 27 2 99 13 7 43 83 22 93 2 8 14 76 30 99 33 59 43 17 21 56 15 98 12 86 18 10 16 67 41 96 47 26 41 7 25 6 6 31 36 4 38 70 18 62 10 47 22 19 18 16 49 45 25 100 42 24 49 15 8 47 24 6 2 92 27 93 16 99 19 35 32 55 21 95 21 97 20 61 23 84 33 72 4 89 13 87 23 52 35 89 16 67 6 14 49 86 12 80 36 2 49 40 39 6 27 82 50 7 41 80 26 9 30 36 14 25 43 65 18 50 39 38 16 71 5 52 44 5 46 66 42 84 37 56 43 50 48 30 24 57 14 84 11 76 42 9 48 54 18 24 7 11 40 78 44 40 25 43 31 44 29 45 34 71 33 69 29 59 14 37 1 31 45 78 7 14 27 13 33 8 31 6 16 48 34 96 23 36 25 57 33 82 24 47 48 69 36 77 33 44 12 26 45 40 10 17 18 52 8 5 34 34 2 4 1 23 38 40 14 79 18 89 2 91 28 14 22 22 6 46 16 55 36 99 50 57 34 39 49 92 29 8 40 14 12 83 46 2 19 32 16 35 24 66 35 77 13 87 13 85 32 2 41 96 31 7 29 73 21 36 9 6 27 63 23 1 5 27 27 36 23 5 41 43 33 69 3 35 24 30 37 26 17 34 14 65 17 54 11 86 9 46 14 64 9 18 3 88 1 15 34 65 20 65 42 57 42 92 37 45 44 74 13 57 19 31 43 28 9 22 10 100 25 64 12 79 49 27 26 90 25 13 8 50 21 81 10 18 40 18 32 72 14 82 22 79 13 44 4 4 15 21 45 67 9 86 12 81 43 89 4 66 44 1 42 26 41 99 29 51 17 25 13 12 24 49 35 66 9 69 20 89 32 65 32 40 4 78 35 19 25 98 22 55 19 17 40 85 41 76 47 85 28 12 10 48 13 18 41 64 35 54 7 95 16 71 35 59 49 62 19 84 3 31 2 41 19 33 43 76 17 46 6 96 27 53 50 39 30 24 3 18 31 42 27 21 10 87 24 57 44 34 41 54 49 50 33 43 46 48 12 43 16 8 39 85 2 79 7 29 8 64 8 23 10 21 6 40 32 40 6 97 21 8 1 74 5 36 8 29 26 13 33 73 4 36 24 64 36 76 16 87 5 92 47 6 25 18 15 24 28 14 12 25 31 77 16 50 4 44 37 55 11 80 25 79 50 21 6 86 22 17 4 63 49 37 47 19 2 100 13 81 41 46 45 59 39 8 30 77 50 89 3 32 38 70 12 7 26 33 26 84 41 18 28 81 4 49 21 77 36 16 2 23 35 59 47 92 40 56 37 83 10 47 47 13 12 72 14 61 11 7 19 46 6 10 23 45 43 64 23 2 50 54 43 65 38 4 21 30 30 9 10 9 23 90 8 8 41 70 44 66 20 56 17 10 16 49 24 80 38 4 26 1 13 27 41 33 44 42 21 47 39 46 49 2 16 43 25 25 37 82 20 40 31 12 21 82 22 41 37 87 4 92 4 73 21 79 32 14 27 41 3 69 34 37 40 42 37 64 5 33 32 38 36 4 35 87 33 86 8 96 35 38 19 99 29 31 49 26 43 22 24 4 38 85 26 55 27 91 47 53 4 51 4 78 4 11 45 61 49 32 31 9 1 80 43 11 35 55 50 11 6 88 19 15 36 76 47 16 42 68 29 81 10 67 14 71 50 3 20 93 15 12 30 61 3 75 9 23 34 71 32 90 44 81 49 21 37 75 31 46 3 43 1 49 9 70 11 64 26 85 43 65 1 23 37 47 13 60 19 62 7 52 37 44 5 49 22 26 7 53 17 76 24 68 3 68 39 22 43 53 32 39 26 37 26 9 10 33 3 35 10 26 50 44 36 11 28 87 40 21 7 21 7 52 33 18 39 68 27 42 32 85 7 48 10 44 9 35 26 32 41 74 27 58 30 19 41 48 1 31 43 33 15 72 40 78 7 73 30 27 28 25 18 72 24 53 47 98 22 83 34 9 11 60 12 37 15 53 18 14 47 71 10 1 14 32 27 86 17 12 36 30 28 78 7 48 5 31 24 38 9 70 20 7 39 48 2 99 50 26 28 83 17 100 28 74 44 45 2 22 40 36 37 49 10 86 34 34 41 7 18 82 22 96 41 6 28 49 40 79 14 51 14 74 41 77 15 39 14 84 29 64 23 21 24 51 33 2 42 38 33 75 50 24 11 13 13 94 18 47 6 84 21 24 15 14 1 25 13 74 30 82 29 66 23 90 7 31 26 61 20 79 38 59 9 41 32 24 20 77 46 28 47 84 49 4 33 25 7 39 41 15 30 89 12 18 1 10 35 64 38 20 3 32 30 93 37 34 18 1 24 6 21 48 30 32 23 11 15 28 43 40 11 66 37 61 29 42 29 19 24 91 4 20 38 100 29 24 22 88 9 31 4 28 20 13 7 9 12 57 2 84 21 35 5 20 19 59 31 8 10 74 3 26 29 81 10 13 31 43 12 65 48 87 38 69 35 98 34 92 38 96 32 48 48 12 16 7 19 93 40 71 18 24 17 84 23 11 29 52 12 39 32 11 37 26 16 33 41 77 16 51 2 2 14 61 7 60 50 76 40 71 40 42 35 8 50 42 9 48 35 92 36 84 25 99 5 6 1 33 20 86 48 64 14 68 7 51 3 6 43 90 48 89 21 78 15 83 3 17 37 25 7 75 34 32 39 90 43 35 13 47 2 13 34 65 46 39 18 75 10 88 37 53 31 34 42 93 5 69 39 76 12 60 44 13 34 51 45 20 46 41 19 91 21 5 10 10 38 57 12 79 50 47 23 61 30 21 2 7 26 24 38 66 41 66 3 4 15 82 5 14 21 66 35 27 22 6 31 75 22 45 23 75 13 41 43 79 23 52 30 7 19 43 17 69 29 98 46 82 18 14 6 24 5 89 48 90 46 19 19 73 6 4 48 61 7 93 4 37 28 95 27 40 7 84 9 87 48 11 12 87 17 93 8 92 49 70 44 43 14 91 30 96 25 41 34 48 9 52 7 61 13 95 34 28 11 13 8 50 21 53 36 69 11 48 2 39 10 24 47 52 32 26 25 90 46 23 39 25 34 92 38 19 27 9 50 9 38 80 27 41 5 78 41 1 15 50 32 75 12 13 26 95 5 23 7 43 43 52 1 39 19 29 22 98 34 59 18 6 24 20 12 59 49 88 39 34 32 93 29 40 8 68 13 86 14 30 25 10 32 69 25 12 10 57 35 7 13 23 27 13 43 71 28 98 11 94 47 65 16 94 11 66 20 35 31 31 8 41 32 52 20 78 19 67 19 25 34 98 24 34 21 17 29 32 47 56 35 7 9 37 18 28 37 64 29 49 36 5 1 99 12 8 12 3 11 95 44 23 50 19 34 23 19 34 7 26
In: Computer Science
Question #3
In 2005, the state legislature of Illinois added the Semi-Solid Waste AcceptanceRegulations(SSWARs) to its State-Wide Semi-Solid Waste Administration Act(SSSSWAA.) These new laws prohibited privately owned landfills in the state from accepting semi-solid waste (e.g., certain types of garbages and rubbishes, sludges, sanitation residues, semisolids, and industrial wastes, etc.) from any source outside the county in which the landfill was located unless expressly permitted by the county.Point Arbors Landfill, Inc., a privately owned business located in Grace County in Illinois, submitted an application to the Grace County government to allow Point Arbors to accept up to 500 tons per day of out-of-state semi-solid waste. In the application, Point Arbors agreed to reserve enough capacity at their landfill to accept all semi-solid waste produced in the county for the next fifteen years. The county rejected the application. Point Arbors sued the county and the state in federal court, alleging that the SSWARsviolated the Commerce Clause of the U.S. Constitution and seeking an injunction against their enforcement.Point Arbors argues that forcing operators of private landfills to limit business to accepting local semi-solid waste discriminates against interstate commerce.Point Arbors also reminds the Court that state laws that discriminate against interstate commerce are unconstitutional unless the state can prove that such laws are justified by valid state interests, unrelated to economic protectionism, that cannot be achieved without such discrimination.The state of Illinois and Grace County argue that the SSWARs do not discriminate against interstate commerce because (1) the laws do not treat out-of-county semi-solids from Illinois any differently than waste from other states, and (2) some counties in Illinois still accept out-of-state semi-solid waste. The defendants further argue that the SSWARs are essential to the public health and welfare because they enable individual counties to make adequate and comprehensive plans for the safe disposal of future waste, as required by SSSSWAA. The U.S. District Court in Illinois concluded that the SSWARs did not discriminate against interstate commerce and therefore did not violate the Commerce Clause. The U.S. Court of Appeals for the Seventh Circuit disagreed and overturned the District Court. The case is appealed to the U.S. Supreme Court and the Court agrees to hear it. What does the Commerce Clause require in this situation? Do Illinois’ Semi-Solid Waste Acceptance Regulations violate the Commerce Clause of the U.S. Constitution? Why or why not? Fully discuss how the Court would likely analyze this case.
In: Accounting
Hector Gonzales runs the floral art company, which supplies floral arrangements to three large supermarket chains throughout Australia. Management has become concerned about the rising costs associated with the process and dispatch of orders. An activity analysis of the indirect costs identified the following customer related cost.
Use of cost drivers
Supermarket customers
|
Activity cost pool |
Cost driver |
Estimated indirect costs |
Total expected use of cost driver** |
1 |
2 |
3 |
|
Orders processing |
Number of orders |
$200 000 |
450 |
300 |
100 |
50 |
|
Returns processing |
Number of returns |
$50 000 |
100 |
50 |
25 |
25 |
|
Delivery |
Number deliveries |
$100 000 |
700 |
400 |
200 |
100 |
|
Rush orders |
Number of rush orders |
$70 000 |
50 |
10 |
20 |
20 |
|
Sales visits |
Number of visits |
$20 000 |
100 |
50 |
25 |
25 |
Supermarket customer Sales revenue**
**Selling price is marked up 50% on direct cost of flowers
Hints: conduct a customer profitability analysis based on the above customer related indirect costs.
In: Accounting
A brief outline in your own words of the key principle(s) underlying AASB15 Revenue from Contracts with Customers
In: Accounting
You have recently been hired by Intersoll Motors Inc. (IMI) in its relatively new treasury management department. IMI was founded eight years ago by Geoff Boycott. Geoff found a method to manufacture a cheaper battery that will hold a larger charge, giving a car powered by the battery a range of 700 km before requiring a charge. The cars manufactured by IMI are midsized and carry a price that allows the company to compete with other mainstream auto manufacturers. The company is privately owned by Geoff and his family and it had sales of $97 million last year. Cost of goods sold totalled $80M and depreciation was $2M.
IMI’s growth to date has come from its profit. When the company had sufficient capital, it would expand production. Relatively little formal analysis has been used in its capital budgeting process. Geoff has just read about capital budgeting technique and has come to you for help. For starters, the company has never attempted to determine its cost of capital, and Geoff would like you to perform the analysis. Because the company is privately owned and not yet publicly traded, base all weights on the book values instead of the market values.
IMI’s capital is made up of a bank loan and owner’s equity. It has a 15-year loan for 8,000,000 with an APR of 13.15% based on semi-annual compounding. IMI has been paying 100,200 monthly for 8 years. Geoff receives a salary in the form of an equity dividend of $1M per year. This amount is expected to grow at 3% per year indefinitely. His required return on equity is 20%. The firm’s marginal tax rate is 35% and this is expected to continue indefinitely.
What is IMI’s outstanding debt value? Calculate the book value of debt as the amount still owing on the bank loan.
What is the value of the unlevered firm? The levered firm?
Determine IMI’s yearly cost of capital based on book values. (Find the after-tax WACC using the
yearly cost of debt)
Would the firm benefit from increasing its debt? Why? (No calculation necessary)
In a real-world situation, why might firms choose to avoid debt? (No calculation necessary)
In: Finance
Fleming, a publicly held company, and several officers of the company, were sued by various stockholders for securities fraud for filing documents that were materially misleading. The stockholders contended that information failed to discuss litigation lost by Fleming that resulted in a damage award of $200 million, which led to the company's stock falling by about 25%. The stock pricer recovered some after part of the trial verdict was set aside, and Fleming settled the case by paying $20 million. Stockholders contended that failure to fully reveal the risks of that litigation caused losses to investors in Fleming stock. The district court dismissed the suit because the plaintiffs failed to show that Fleming made deliberate and materially misleading statements of omissions. Stockholders appealed. [City of Philadelphia v. Fleming Co., 264 F.3d 1245, 10th Cir. (2001)]
What evidence is required in order to show that the defendant "deliberately" made misleading statements or omissions to potential stockholders.
In: Finance
Respond to the following questions:
1. Does Thailand have a democracy?
2. As CEO of a multinational that has already invested in and been successfully producing in Thailand (for both Thailand and overseas markets), when you heard the news about the 2006 and 2014 coup that toppled democratically elected governments, should you be concerned? Why or why not?
3. As CEO of a company that is ready to export to Thailand or that is ready to source from Thailand, would you be concerned about the political risk in Thailand? Would you proceed as planned or look for alternative export markets or alternative countries from which to source products?
In: Operations Management
3. Scores on a statistics exam are given: 85 72 92 90 74 65 68 59 74 85 63 79 81 92 95 74 88 55
Use this data to calculate the:
A) mean __________ B) median ________ C) mode ________ D) range ________
E) standard deviation _________ F) find the z-score for a test grade of 90._______
G) Construct a stem and leaf display using this data.
H) Construct a box and whisker plot using this data.
I) Construct a 90% confidence interval for u.
J) Does this data provide sufficient evidence at the a = .05 level of significance to conclude that the mean score is greater than 75?
K) State the appropriate hypotheses to conduct the test:
ii Calculate the value of the test-statistic
iii. Give the p-value of the test
iv. Using a 5% significance level, what is your conclusion? Why?
In: Math