Brian Kelly is the founder and CEO of Kelly’s Barbecue and Grill (KBG).  KBG is a local retailer of outdoor cooking equipment, ranging from small portable gas grills to competition grade barbecue grills and smokers.  Kelly has operated his business profitably for nearly 15 years.  In recent years, sales revenues and profits have been stagnant.  As an old-fashioned type, Kelly has always operated his business on a cash-only basis.  After consulting with his accountant, Josh Adams CPA, Kelly believes that his sales policy has left little room for additional growth.  

Kelly is considering offering 30-day credit to customers in an effort to drive increased sales.  Initially, he plans to only offer credit on his high-end propane grill model before extending this new policy to his full inventory.  His luxury gas grill model, the Caliber Cross Flame Pro retails for $12,590 and costs Kelly $10,470 per unit from his supplier.  There should be no change to his cost per unit, but Kelly believes that he might be able to mark-up his retail price to $13,000 since he will be offering more flexible payment terms.  

KBG currently sells an average of 15 units of the Caliber model each month.  Kelly thinks that he may be able to sell up to an average of 22 units per month if he begins offering the proposed 30-day credit terms.  Kelly has further decided that a 3% per month required return would be appropriate for evaluating the proposed credit policy change.  

1. Calculate the net present value (NPV) of switching from the cash-only policy to the 30-day credit terms.

2. Determine the minimum increase, or maximum decrease, in monthly sales volume for Kelly to deem the switch appropriate.

Kelly currently places a monthly order of 15 units of the Caliber model from his supplier.  It costs him $50 to place each order and he estimates that it costs him about $23 to store each grill in inventory for a year.

3. Under his current ordering system, with monthly sales of 15 units;
   1. What is the average inventory balance (in units) for the Caliber model, assuming the grills are sold evenly throughout the month?

2. How much does Kelly pay per year in ordering costs?

3. How much does Kelly pay per year in storage costs?

4. How much money would Kelly save per year if he were to optimize his order size?  

5. Assuming his goal would be to minimize the total costs incurred for ordering/storing inventory, how many units of the Caliber model should Kelly order each time he places an order when his monthly sales volume is 22 units?  

Suppose you are now a Founder and CEO of Rent the Dresses, Inc., an online rental site for premium dresses primarily for women. Because the business is a start-up, there is no accountant on the management team yet, so you have been doing the accounting. You notice that an average of 100,000 visitors come to your website, of which 60% browse through the website. 20% of them register and put at least one item in the shopping cart. One out of three registered customers actually checkout and pay for the items. Calculate the following (and show your work for partial credit!) a. Bounce rate b. Conversion rate c. Average monthly revenue, assuming AOV is $200.

Cato Boldon 32, CEO and founder of Optimum Athletics, reside in the island of Trinidad and Tobago with his wife and children. The business has been in operation since 2008. He decided to start the business during the financial crisis that hit the world in 2008 due his passion for track and field. The company has been experiencing a loss for the last two years and cash flows are beginning to tighten. A major customer owes the company US$100,000 for almost a year. He gets a salary of 5 million per annum from the business. He has savings of US$ 100,000 and his looking to invest to secure his financial future. He wants to enjoy both safety and capital gains. The government of Trinidad is currently in discussion on whether to grant small business in the manufacturing industry an incentive package. Boldon is considering his options. Should I sell the business or go back to management in a corporate enterprise. He has a Masters of Science of 35 Degree in Kinesiology. His two children are aged 9 and 13 yrs old respectively and his wife is six months pregnant. His wife recently completed her Law Degree and is looking to be called to the bar in Trinidad and Tobago in the next six months. Her husband had been contributing to her alumni Scholarship Fund for the last 5 years and wishes to continue. His father 60, is not doing well. He was recently diagnosed with diabetes. Boldon recently found out that his father has limited insurance coverage. Boldon is concerned about his retirement and his ability to finance his children education. He wanted the business to be part of his pension plan as he wanted the company to be listed on the Trinidad Stock Exchange. He had to use the deposit that he had saved for his home ownership to fix the family car that was recently damaged by hurricane Irma. As Financial Advisors you are to:

You are required to:

1. Prepare an Investment Policy Statement for Mr. Boldon.

Cato Boldon 32, CEO and founder of Optimum Athletics, reside in the island of Trinidad and Tobago with his wife and children. The business has been in operation since 2008. He decided to start the business during the financial crisis that hit the world in 2008 due his passion for track and field. The company has been experiencing a loss for the last two years and cash flows are beginning to tighten. A major customer owes the company US$100,000 for almost a year. He gets a salary of 5 million per annum from the business. He has savings of US$ 100,000 and his looking to invest to secure his financial future. He wants to enjoy both safety and capital gains. The government of Trinidad is currently in discussion on whether to grant small business in the manufacturing industry an incentive package. Boldon is considering his options. Should I sell the business or go back to management in a corporate enterprise. His has an Masters of Science Degree in Kinesiology.

His two children are aged 9 and 13 yrs old respectively and his wife is six months pregnant. His wife recently completed her Law Degree and is looking to called to the bar in Trinidad and Tobago in the next six months. Her husband had been contributing to her alumni Scholarship Fund for the last 5 years and wishes to continue. His father 60, is not doing well. He was recently diagnosed with diabetes. Boldon recently found out that his father has limited insurance coverage. Boldon is concerned about his retirement and his ability to finance his children education. He wanted the business to be part of his pension plan as he wanted the company to be listed on the Trinidad Stock Exchange. He had to use the deposit that he had saved for his home ownership to fix the family car that was recently damaged by hurricane Irma.

As Financial Advisors you are to: 1. Prepare an Investment Policy Statement for Mr. Boldon

Cato Boldon 32, CEO and founder of Optimum Athletics, reside in the island of Trinidad and Tobago with his wife and children. The business has been in operation since 2008. He decided to start the business during the financial crisis that hit the world in 2008 due his passion for track and field. The company has been experiencing a loss for the last two years and cash flows are beginning to tighten. A major customer owes the company US$100,000 for almost a year. He gets a salary of 5 million per annum from the business. He has savings of US$ 100,000 and his looking to invest to secure his financial future. He wants to enjoy both safety and capital gains. The government of Trinidad is currently in discussion on whether to grant small business in the manufacturing industry an incentive package. Boldon is considering his options. Should I sell the business or go back to management in a corporate enterprise. His has an Masters of Science Degree in Kinesiology.

His two children are aged 9 and 13 yrs old respectively and his wife is six months pregnant. His wife recently completed her Law Degree and is looking to called to the bar in Trinidad and Tobago in the next six months. Her husband had been contributing to her alumni Scholarship Fund for the last 5 years and wishes to continue. His father 60, is not doing well. He was recently diagnosed with diabetes. Boldon recently found out that his father has limited insurance coverage. Boldon is concerned about his retirement and his ability to finance his children education. He wanted the business to be part of his pension plan as he wanted the company to be listed on the Trinidad Stock Exchange. He had to use the deposit that he had saved for his home ownership to fix the family car that was recently damaged by hurricane Irma.

What is the asset allocation in this case study?  

What investment strategy should be taken based on the asset allocation?

You are the co-founder and CEO of Fantastic PLC. The below announcement regarding one of the products (product X) your company produces has been brought to your attention by your partner asking you for advice on what the company should do in light of this event:

A documentary recently aired on the health channel followed a scientific research that confirmed products, like product X, contain carcinogenic chemicals in concentrations harmful to human health

Write a report to include the following answers:

• Describe how the above event will affect the demand for product X that your company is producing.
• In light of this change make proper business recommendations (e.g. maintain/increase revenues and/or to maintain/regain/increase customers/market share). Use examples to better explain your answer.”

Assume you are Helena Fogarty, the CEO and founder of Mi Ola, and you are facing a difficult decision about whether or not to outsource manufacturing from the United States to another country. You would like to manufacture only in the United States but competitive pressures are forcing you to consider alternatives. You have a team of advisors with diverse backgrounds whom you trust and with whom you work closely. You would like to maximize the quality of the group’s decision making.

Which of the following is an approach that you might consider using to maximize the effectiveness of the group’s decision making process? Check all that apply.

Use groupthink

Use the nominal group technique

Use the Delphi technique

Use brainstorming

Assume you are Helena Fogarty, the CEO and founder of Mi Ola, and you are engaged in an intense group decision making process with your trusted advisory board. You would like to use evidence-based management to improve your decision making process.

Which of the following things might you do to improve your evidence-based decision making?

Encourage experimentation and learning by doing

Base decisions on previous decisions because if it isn’t broken, the evidence suggests you shouldn’t try to fix it

Encourage people to stick with a decision, even if it seems to be failing, so that you will eventually succeed

Build a culture in which people avoid having unpleasant or difficult conversations

The target company is First Data, it was acquired by Fiserv. I need to do analysis of the First Data company. Why it was acquired by Fiserv.

The CEO of the company is looking for some expansion opportunities. He/She approaches the corporate finance division within the company for advice. Suppose you are one of the analysts in the corporate finance team. Your job is to identify a potential takeover target for the company and outline the reasons why such an acquisition is deemed to be beneficial. Complete a detailed analysis about the takeover deal. Your report should include but not limited to the brief of the target. Classify the type of the takeover deal ( eg. horizontal or vertical), describe the benefits associated with the deal and identify potential source of synergy.

Can you analyze Amazon

. You must write in third person and with the client in mind.

• Brief Company Overview:

Company and Name Location

Brief History and Years in Business o Business Model

Key Markets, Activities and Product Lines o Key Senior Executives (Founder/CEO)

Vision, Mission, and Corporate Values

Stated Company Objectives

Size (Revenue, Profit, # Of Employees, Number Of Facilities

• Resources:

Tangible Resources

Intangible Resources

• Capabilities

• Core Competencies

• Business Model and Value Chain

• Strategic Intent

• Long-Term Objectives

• Current Strategies

• Internal Assessment

3 Years Sales History

3 Year Costs-Profit Margin History

Profitability Ratios

Liquidity Rations

Leverage Rations