Buenaventura

Growth is more than merely one part of the mission and vision of Buenaventura – the leading mining company in Peru and one of the largest gold and silver producers in the world. It is the company’s daily mantra. Operating in a capital-intensive industry and in a geographic environment not as welcoming to investments as it should be, the company has to be persistent to maintain the degree of success it has achieved over the years. Joint ventures, offerings through the Lima Stock Exchange, and American Depositary Receipts (ADR) issuance on the New York Stock Exchange (NYSE) were all means to achieve the company’s goal of continued growth. But when it came to creating long-term sustainable shareholder value, there was only one way to do it: by enhancing governance practices.

The Roots of the Need for Governance

Buenaventura has focused on exploration and acquisitions, both on its own and through joint ventures, since its founding in 1953. For Buenaventura, conducting business responsibly and effectively is part of its strategy to increase shareholder value. Buenaventura suffered several years of losses that ultimately led to a high level of debt amid Peru’s weak economic environment during the 1980s. In the early 1990s, however, Peru emerged into a period of greater stability, allowing Buenaventura to plan for a more promising future. When the company decided to invest in Yanacocha, now a world class gold deposit, Buenaventura faced high-cost exploration and development investments.

Convinced that the market pays for good corporate governance practices, Buenaventura chose to cancel its debt with the proceeds of an initial public offering (IPO) of ADRs on the NYSE in 1996. The decision reflected Buenaventura’s Board of Directors’ and management’s commitment to comply with United States Securities & Exchange Commission (SEC).regulations. Prior to the IPO, the company took several critical steps toward improving its governance: revamping its Board of Directors, incorporating independent members and establishing Board Committees; implementing an Ethics Code; creating a Disclosure Committee; and finally, eliminating its dual class share structure and converting all its shares into a single class, with equal voting rights.

         Corporate Governance Steps

Buenaventura has implemented a comprehensive set of rules to ensure good governance. The reforms were inspired by the recommendations of major international organizations, such as the OECD and the World Bank/IFC. The decision to convert all shares into a single class of common shares served to keep the controlling group together, and was also considered the best way to continue to maximize the value of the company. The stock’s liquidity was bolstered as a result, as investors responded positively to the single voting class of shares. In the event of a tender offer, the Board must review the proposal and make its recommendation all shareholders, who in turn make their own decisions on whether to accept the offer. Buenaventura takes voting rights seriously. To facilitate the participation of all shareholders in General Meetings, the company calls Meetings 25 days in advance and provides shareholders the Meeting’s agenda. ADR holders receive proxies through the depositary bank and special procedures have been put in place to ensure that ADR holders have sufficient time to consider how to vote and that their votes are duly represented at General Meetings.

         Results

Buenaventura recognizes that it must continue to improve its governance framework as it strives to maximize shareholder value. Its governance improvements are clearly recognized by the market, as demonstrated by its three-fold increase in market capitalization, from around US$ 400 million to US$ 3.6 billion. The company reported net revenue of US$ 316 million in 2004, generating operating income of US$ 86.6 million in that year. Today, Buenaventura is working on complying with the Sarbanes-Oxley requirements. The company expects to be certified by external auditors as Sarbanes-Oxley compliant in June 2006.

Critically evaluate how Buenaventura achieves success through corporate governance. Provide justifications within the case study.

Imagine that you have been appointed as the CEO of Buenaventura. Discuss how you would strengthen the corporate governance using BRC Model.

Buenaventura

Growth is more than merely one part of the mission and vision of Buenaventura – the leading mining company in Peru and one of the largest gold and silver producers in the world. It is the company’s daily mantra. Operating in a capital-intensive industry and in a geographic environment not as welcoming to investments as it should be, the company has to be persistent to maintain the degree of success it has achieved over the years. Joint ventures, offerings through the Lima Stock Exchange, and American Depositary Receipts (ADR) issuance on the New York Stock Exchange (NYSE) were all means to achieve the company’s goal of continued growth. But when it came to creating long-term sustainable shareholder value, there was only one way to do it: by enhancing governance practices.

The Roots of the Need for Governance

Buenaventura has focused on exploration and acquisitions, both on its own and through joint ventures, since its founding in 1953. For Buenaventura, conducting business responsibly and effectively is part of its strategy to increase shareholder value. Buenaventura suffered several years of losses that ultimately led to a high level of debt amid Peru’s weak economic environment during the 1980s. In the early 1990s, however, Peru emerged into a period of greater stability, allowing Buenaventura to plan for a more promising future. When the company decided to invest in Yanacocha, now a world class gold deposit, Buenaventura faced high-cost exploration and development investments.

Convinced that the market pays for good corporate governance practices, Buenaventura chose to cancel its debt with the proceeds of an initial public offering (IPO) of ADRs on the NYSE in 1996. The decision reflected Buenaventura’s Board of Directors’ and management’s commitment to comply with United States Securities & Exchange Commission (SEC).regulations. Prior to the IPO, the company took several critical steps toward improving its governance: revamping its Board of Directors, incorporating independent members and establishing Board Committees; implementing an Ethics Code; creating a Disclosure Committee; and finally, eliminating its dual class share structure and converting all its shares into a single class, with equal voting rights.

         Corporate Governance Steps

Buenaventura has implemented a comprehensive set of rules to ensure good governance. The reforms were inspired by the recommendations of major international organizations, such as the OECD and the World Bank/IFC. The decision to convert all shares into a single class of common shares served to keep the controlling group together, and was also considered the best way to continue to maximize the value of the company. The stock’s liquidity was bolstered as a result, as investors responded positively to the single voting class of shares. In the event of a tender offer, the Board must review the proposal and make its recommendation all shareholders, who in turn make their own decisions on whether to accept the offer. Buenaventura takes voting rights seriously. To facilitate the participation of all shareholders in General Meetings, the company calls Meetings 25 days in advance and provides shareholders the Meeting’s agenda. ADR holders receive proxies through the depositary bank and special procedures have been put in place to ensure that ADR holders have sufficient time to consider how to vote and that their votes are duly represented at General Meetings.

         Results

Buenaventura recognizes that it must continue to improve its governance framework as it strives to maximize shareholder value. Its governance improvements are clearly recognized by the market, as demonstrated by its three-fold increase in market capitalization, from around US$ 400 million to US$ 3.6 billion. The company reported net revenue of US$ 316 million in 2004, generating operating income of US$ 86.6 million in that year. Today, Buenaventura is working on complying with the Sarbanes-Oxley requirements. The company expects to be certified by external auditors as Sarbanes-Oxley compliant in June 2006.

Critically evaluate how Buenaventura achieves success through corporate governance. Provide justifications within the case study.

Imagine that you have been appointed as the CEO of Buenaventura. Discuss how you would strengthen the corporate governance using BRC Model.

Please give me the correct answer:

Lucy’s Music Emporium purchased $50 million in fixed assets in January and their accountant told them that they would have to depreciate the assets over 20 years (they use the same depreciation calculations for shareholder reporting and income tax purposes). In December they learned that their accountant did not have a college degree and fired him. They hired a new accountant with a college degree and she told them that they could depreciate the assets over 15 years. How would the new depreciation assumption affect the company's financial statements relative to the old assumption?

1. The firm's EBIT would increase.

2. The firm's cash position would increase, all else held equal.

3. The firm's reported earnings per share would increase.

4. The firm's reported net fixed assets would increase.

5. The firm's net liabilities would increase.

Which of the following statement is incorrect?

1. Most of the answers are correct.

2. Total net operating capital = NOWC + Operating long-term assets.

3. Cost of goods sold (COGS) are the revenues less any discounts or returns.

4. An S corporation is a small corporation which, under Subchapter S of the Internal Revenue Code, elects to be taxed as a proprietorship or a partnership yet retains limited liability and other benefits of the corporate form of organization.

5. Accounts receivable arises when a firm sells its products to customers but does not demand immediate payment, and the customers then have obligations to make the payment at a later time, usually less than a year.

Which of the following statement is incorrect?

1. Most of the answers are correct.

2. A firm’s balance sheet is a statement of the firm’s financial position at a specific point in time.

3. Retained earnings is the portion of the firm’s earnings that have been saved rather than paid out as dividends.

4. Operating long-term liabilities are the liabilities that are a natural consequence of the firm’s operations, such as accounts payable and accruals and include notes payable or any other short-term debt that charges interest.

5. S corporations are businesses that have the limited-liability benefits of the corporate form of organization yet are taxed as partnerships or proprietorships.

Which of the following statement is incorrect?

1. A capital gain occurs when an asset is sold for less than its book value.

2. The income statement reports the results of operations over a period of time, and it shows earnings per share as its “bottom line.”

3. The LIFO (last-in, first-out) method assumes that the items most recently placed in inventory are the first ones used in production.

4. Most of the answers are correct.

5. On a typical balance sheet, cash, short-term investments, accounts receivable, and inventories are listed as current assets because those items are expected to converted into cash within a year.

Jessie's Bobcat Rentals' operations provided a negative net cash flow last year, yet the cash shown on its balance sheet increased. Which of the following statements could explain the increase in cash, assuming the company's financial statements were prepared under generally accepted accounting principles?

1. The company sold some of its fixed assets.

2. The company retired a large amount of its long-term debt.

3. The company dramatically increased its capital expenditures.

4. The company repurchased some of its common stock.

5. The company had high depreciation expenses.

Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?

1. The company pays a dividend.

2. The company repurchases common stock.

3. The company gives customers more time to pay their bills.

4. The company issues new common stock.

5. The company purchases a new piece of equipment.

Which of the following statement is correct?

1. All the answers are incorrect.

2. The income statement begins with assets, which are the “things” the company owns.

3. Cost of goods sold (COGS) reflects the estimated costs of the assets that wear out in producing goods and services.

4. Gross income is defined as taxable income less a set of exemptions and deductions which are spelled out in the instructions to the tax forms individuals must file.

5. The fundamental value of a company to its investors depends on the present value of its expected future FCFs which are discounted at the company’s weighted average cost of capital (WACC).

Olivia Hardison, CFO of Impact United Athletic Designs, plans to have the company issue $500 million of new common stock and use the proceeds to pay off some of its outstanding bonds. Assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (EBIT), and its tax rate all remain constant. Which of the following would occur?

1. The company would have to pay less taxes.

2. The company's net income would increase.

3. The company's taxable income would fall.

4. The company would have less common equity than before.

5. The company's interest expense would remain constant.

18. A “bill and hold” scheme is most likely to include:

A) Shipment of items to a customer beyond what the customer has ordered.

B) Recording as sales items those that the seller retains in inventory as of year-end.

C) Billing of items that are held by customers for future revenue production purposes.

D) Selling items at substantial discounts near year-end.

You are a business consultant in a remote and isolated small town. Two customers, a dentist and a portrait artist, came to you to ask for advice. They are considering to raise the price of their service to increase revenue. Write a short report for each of them using your economic training. How would your report be different if all these happened in the context of a great metropolitan area?

Envy Inc. an online shoe retailer, has a return policy that allows customers to return merchandise in unused condition for a full refund within 60 days of purchase. Envy knows from past experience that about 12% of sales are consistently returned.   

Describe how/when Envy should recognize revenue and provide a rational (explanation) for your answer.

Based on the following, Please answer the following, Thanks!

Imagine you are a human resources professional working at a prominent global company. There have been recent concerns regarding how the organization has been conducting business in the global market, and it has tasked you with identifying problems and recommending solutions. You will analyze information from the case study Nimble Storage: Scaling Talent Strategy Amidst Hyper-Growth for how the organization’s business practices have aligned with more geocentric perspectives, identifying potential gaps in its current practices. You will then make a series of recommendations directed to leadership for addressing identified gaps and ensuring a successful transition regarding your proposed changes.

Introduction:

The Nimble Storage is a hybrid growing data storage System Company situated in Silicon Valley. The CEO of the company is Suresh Vasudevan, and the Vice President of the HR department is Paul Whitney. The company's purpose of developing the hybrid system, which is used in flash memory (It is a storage memory that leads to rapid access to random data) and hard disk to increase the performance of the company at the competitive prices offered to the customers in order to give the efficient and the flash storage platform.

The case analyzes the past performance of the company and the talented hiring of the personnel by Whitney, where the founder and CEO of the company plan to transfer the storage world into the hybrid storage system and wanted to achieve the goal to make a billion dollar company within three years. For this purpose, Suresh Vasudevan aimed to focus on both short term and long term key people initiative to measure the results. The company decided to launch the new leadership program named "LEAD" for the sustainable future growth of the company and also effects on the people initiatives to go forward in future.

The objective of the case is to make quantitative and qualitative analysis by identifying the issues, providing solutions to the problems, and providing an alternative for the growth and evaluating and choosing the best alternative and provide an implementation plan.

Define the issues/Problem statement:

The company has finished its second full fiscal year of storage on January 31, 2013, which provided the great opportunity for reproducing its core values, reviewed the success over the last years and also the strong personnel who made it possible. The company always aims to deliver the world’s most efficient way of data storage by target the broad range of enterprise applications with the goal of optimizing in many factors such as performance efficiency, capacity efficiency, data protection and dramatic simplicity.

Problems/Issues and its solutions:

In order to stabilize the performance, the company faced many potential problems and issues in producing the product and also HR-related issues faced by Whitney.

The first problem was related to the health of the customers' network that led to the unusual high temperature in the data center. The company is now organizing the data center in order to convince the customers to the belief that will help to solve the range of problems in one single platform.

The second problem was the business team was not effective due to lack of motivation and employee turnover, it as one of the biggest challenge that company was facing in last nine months. So, the business wanted to improve its values by making the business by conducting two ways process with the two-sided as the same coin. It would result in the powerful feedback and result oriented of employees, which will result in employee retention and run the business with the order of framework and program perspective.

The company was facing the hiring issue as they wanted to maintain its culture and status quo, the company needed to change the paid time off/personal time off PTO policy in fifteen days, the company wanted to increase the length of services, and they tested the idea but not preferred by the company. Therefore, the employees wanted a favor, and the company made the PTO flexible and unlimited sick leaves and holidays for employee retention.

Suresh Vasudevan had talked about the cultural openness and transparency in sharing the information to the tons of people via any social website, such as Facebook and Google. The company estimates that the openness will be challenging to measure as the hidden information would be exposed publicly.

Questions;

1. Determine gaps in the organization’s current practices within the global market that are relevant to the human resources team of the organization.

2. Determine gaps in the organization’s current practices within the organization that are relevant to the human resources team of the organization from a geocentric perspective. What issues or problems are present regarding the organization’s accommodations for global employees?

3. Determine gaps in the technological tools and structure of the organization that should be considered when working within a global structure.

Ice Factory, a sno-cone stand, opened on the perimeter of campus two months ago. Initially, Ice Factory selected a pricing objective (strategy) that focused on maximizing volume and revenue as well as encouraging a greater volume of purchases. After two months of selling sno-cones to faculty, staff, and students, business is booming. Ice Factory has decided it is time to evaluate different pricing tactics that will generate additional sales from current customers and also sales from new customers.

In one or more fully formed paragraphs, identify the pricing objective (strategy) used when Ice Factory first opened, then list five pricing tactics Ice Factory can use to generate additional sales, and finally explain in detail how Ice Factory can implement three of those tactics to arrive at a final price for customers.

A researcher observes the weight of a class of 36 students in high school. The given table shows the data she collected​ (in kg).   

The researcher wants to test whether the mean weight of all high school students in the state

​(μ​)

would be

70

kg or not.

​So, the null and the alternative hypotheses for the test the researcher wants to conduct​ are:

A.The​ researcher's null hypothesis is

H0: μ=70

and the alternative hypothesis is

HA: μ≠70.

Your answer is correct.

B.The​ researcher's null hypothesis is

H0: μ≥70

and the alternative hypothesis is

HA: μ≤70.

C.The​ researcher's null hypothesis is

H0: μ=70

and the alternative hypothesis is

HA: μ≥70.

D.The​ researcher's null hypothesis is

H0: μ≥70

and the alternative hypothesis is

HA: μ≠70.

For a prespecified​ 5% significance​ level, the

p​-value

of the test the researcher wants to conduct is

nothing.

.How does cellphone service compare between different cities? The data stored in CellService represents the rating of Verizon and AT&T in 22 different cities (Data extracted from “Best Phones and Services,” Consumer Reports, January 2012, p. 28, 37). Is there evidence of a difference in the mean cellphone service rating between Verizon and AT&T? (Use a 0.05 level of significance)

I WANT THE ANSWER IN EXCEL USING THE DATA ANALYSIS....DO NOT PROVIDE A HAND WRITTEN ANSWER...I'm trying to understand the functions in excel