Read the overview below and complete the activities that follow.

While the company’s strategy sets forth an approach to offering superior value, a company’s business model is management’s blueprint for delivering a valuable product or service to customers in a manner that will yield an attractive profit. In this exercise you will be asked to evaluate the business model for SiriusXM.

The two elements of a company’s business model are (1) its customer value proposition and (2) its profit formula. The customer value proposition is established by the company’s overall strategy and lays out the company’s approach to satisfying buyer wants and needs at a price the customer will consider to be a good value. The greater the value provided and the lower the price, the more attractive the value proposition is to customers. The profit formula describes the company’s approach to determining a cost structure that will allow for acceptable profits given the pricing tied to its customer value proposition. The lower the costs given the customer value proposition, the greater the ability of the business model to be a moneymaker. The nitty-gritty issue surrounding a company’s business model is whether it can execute its customer value proposition profitably. Just because company managers have crafted a strategy for competing and running the business does not automatically mean that the strategy will lead to profitability—it may, or it may not.

Go to investor.siriusxm.com and check whether Sirius XM’s recent financial reports indicate that its business model is working. Are its subscription fees increasing or declining? Is its revenue stream from advertising and equipment sales growing or declining? Does its cost structure allow for acceptable profit margins?

Are Sirius XM’s subscription fees increasing or decreasing? Explain your answer. Make this original and answer all 3 question.

Strategy and a Company's Business Model

Read the overview below and complete the activities that follow.

While the company’s strategy sets forth an approach to offering superior value, a company’s business model is management’s blueprint for delivering a valuable product or service to customers in a manner that will yield an attractive profit. In this exercise you will be asked to evaluate the business model for SiriusXM.

The two elements of a company’s business model are (1) its customer value proposition and (2) its profit formula. The customer value proposition is established by the company’s overall strategy and lays out the company’s approach to satisfying buyer wants and needs at a price the customer will consider to be a good value. The greater the value provided and the lower the price, the more attractive the value proposition is to customers. The profit formula describes the company’s approach to determining a cost structure that will allow for acceptable profits given the pricing tied to its customer value proposition. The lower the costs given the customer value proposition, the greater the ability of the business model to be a moneymaker. The nitty-gritty issue surrounding a company’s business model is whether it can execute its customer value proposition profitably. Just because company managers have crafted a strategy for competing and running the business does not automatically mean that the strategy will lead to profitability—it may, or it may not.

Go to investor.siriusxm.com and check whether Sirius XM’s recent financial reports indicate that its business model is working. Are its subscription fees increasing or declining? Is its revenue stream from advertising and equipment sales growing or declining? Does its cost structure allow for acceptable profit margins?

Are Sirius XM’s subscription fees increasing or decreasing? Explain your answer. Make this original and within the last 3 yrs

CMBS B-piece buyers were, from 2005-2007, able to greatly reduce or completely eliminate their risk exposure that they held as owners of first-loss / subordinate bonds. How did they do this?

Evaluate how outdated motivation theories can lead to ineffective and antiquated rewards systems, as noted by Bowey (2005).

Analyze the role that culture as a component of compensation design plays in the creation of motivation theories.

Financial Statement Effects of Accounts Payable Transactions

Petroni Company engages in the following sequence of transactions every month:
1. Purchases $500 of inventory on credit.
2. Sells $500 of inventory for $640 on credit.
3. Pays other operating expenses of $125 in cash.
4. Collects $640 in cash from customers.
5. Pays supplier of inventory $500.

a. Create a monthly income statement and statement of operating cash flow (direct method) for four consecutive months.

Do not use negative signs with any of your answers below.

b. The CFO is disappointed with the cash flows from the business. They do not provide the support for investment and growth that she wants. She proposes delaying supplier payments by a month. That is, each month's inventory purchase will be paid for in the following month. How would this change the monthly income statements and operating cash flows in part a?

Do not use negative signs with any of your answers below.

The following table shows death rates due to chronic obstructive pulmonary disease among adult men in the Southern states and Mountain states in 2005. Use this data to compare death rates due to this disease in the two regions of the country.

Death Rates Due to Chronic Obstructive Pulmonary Disease Among Adult Men by Region: 2005 (Deaths per 100,000)

Source: National Vital Statistics System, 2005

www.cdc.gov/mmwr/preview/mmwrhtml/mm5745a4.htm

a.   Which region had the highest mean death rate from chronic obstructive pulmonary disease? Show calculations.

b.   Calculate the median death rate due to chronic obstructive pulmonary disease in each region. Show calculations and write an interpretation for the median in each case.

c.   Describe the shape of the distribution in the Mountain states, and explain how you arrived at your description.

Company: Walmart grocery

Describe the total market for your solution: Who are potential customers? (ex: “Everyone who ________”). Who are their Target Customers? Be specific including an explanation of the most key segments within this market. Identify and briefly describe at least three target segments that this company serves, being sure to identify them using as many as possible of the target characteristics outlined in the market segmentation module (demographic, geographic, psychographic or behavioral).

Lowes, a home improvement retailer, has authorized its marketing research department to make a study of customers who have been issued a Lowes charge card. The marketing research department hopes to identify the significant variables that explain the variation in purchases. Once these variables are determined, the department intends to try to attract new customers who would be predicted to make a high volume of purchases. Twenty-five customers were selected at random, and values for the following variables were recorded:

y =        Average monthly purchases (in dollars) at Lowes

x₁ =      Customer age

x₂ =      Customer family income

x₃ =      Family size

Part of the data appear in the Excel worksheet below. A regression model was developed using this sample data. The partial data and Excel regression output are provided below (complete data from all twenty-five customers was used for the analysis). Use this output to answer questions the questions that follow.

12.

Required information

           Examine the correlation matrix below.

Does there appear to be any problem with multicollinearity in this regression model? Clearly and briefly discuss the criteria you used to arrive at your answer. If multicollinearity is indicated, identify the appropriate variable(s) involved.

Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information:

If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above.

The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 11% discount rate.

Required:

1. What is the net present value of the “keep the old truck” alternative?

2. What is the net present value of the “purchase the new truck” alternative?

3. Should Bilboa Freightlines keep the old truck or purchase the new one?