1. Describe a transformation process within an organization that is familiar to you; list all inputs, components, and the transformation process that produces either a product or service the organization delivers its customers. Make sure you mention all of the parts of the transformation process.

2. What is the difference between a “products or goods” versus “services”? What are some of the similarities and differences between the two? Can services be inventoried? (Last Question is Lecture Based) Give some examples based upon your experience as a customer or from your professional experience.

3. Many people state that their organization has no customers. Is it possible for a business, or department within an enterprise, not to have customers? Why or why not? How does the customer influence an operations strategy? What is the difference between a strategy and an operations plan?

Facts:

A Big Company (ABC) is one of several corporations owned entirely by XYZ corporation. XYZ is publicly traded on a stock exchange. ABC makes an over-the-counter vitamin pill that has been very popular for many years.

ABC engaged the services of a marketing firm, SellALot, LLC, to market this diet pill. Mr. Bragger, the member of the LLC with whom the CEO of ABC directly dealt, had previously told many of SellALot’s clients that he worked for ABC. SellALot was the exclusive distributor for this vitamin pill in the US. Mr. Bragger is also a member of the Board of Directors of XYZ. SellALot has 4 other members of this LLC.

The CEO of ABC, Mr.Successful, was also on the board of XYZ. He and his partner, Counts Fingers (who was also Mr. Successful’s CPA) owned approximately 25% of the outstanding stock of XYZ. The general partnership was known as S and C Partnership (a limited partnership with Mr. Bragger as the only limited partner and the partner who provided the funds to buy the stock from Mr. Successful and Counts Fingers) actually owned this stock after Mr. Successful and Counts Fingers transferred the stock to the partnership.

Counts Fingers is also the Chief Financial Officer for Mega Bucks Bank which made the loan to Mr. Bragger- he used those loan proceeds to contribute to the S and C Partnership to buy the XYZ stock from Mr. Successful and Counts Fingers. Mr. Bragger is a member of the Board of Directors of Mega Bucks Bank.

ABC’s vitamin pill has recently been the subject of much attention and litigation. The pill has apparently caused many health problems with those who have taken it for more than a couple of weeks. Over 1,000 of those who took the pill for more than 4 weeks at a time have had heart valve replacement surgery and it appears that this surgery was necessitated by the vitamin pill which ABC makes. There is a class action lawsuit with more than one million class members who have been harmed in some fashion by this vitamin pill. The class action lawsuit filings have demanded 5 billion dollars in damages for all of these litigants.

XYZ is currently considering selling ABC to an investor (Private Equity, LLC.). You have been hired to determine how much money ABC might be worth and to assess the litigation exposure of ABC for this vitamin pill made by ABC.

Questions:

1. Describe the agency relationships of the business organizations and the individuals named in this fact situation and describe the duties of each to the other. (You only have to describe the duties once and then you can refer to this list with all of the other agency relationships you discuss) If the parties could be in more than one agency relationship, the be sure to include all of the possibilities in your response.

2. Explain the legal theory that would make XYZ liable for the ABC lawsuit.

   Would there be any viable defense to this liability claim against XYZ?

3. Describe and explain how SellALot, LLC, C and S Partnership,and Mega Bucks Bank would each be liable for the vitamin pill litigation.   

4. What is your recommendation to your client, Private Equity, LLC and why is this your recommendation?

What is Netflix Company Financial Performance 2010-2017?

Analyze and discuss trends from 2010-2017 for total revenue, net income, earnings per share, and common stock price. Do research to explain reasons for upturns or downturns.

27 randomly selected students were asked the number of movies they watched the previous week. The results are as follows: # of Movies 0 1 2 3 4 5 6 Frequency 5 2 2 3 7 3 5 Round all your answers to 4 decimal places where possible. The mean is: The median is: The sample standard deviation is: The first quartile is: The third quartile is: What percent of the respondents watched at least 6 movies the previous week? % 45% of all respondents watched fewer than how many movies the previous week?

*Stock B has a two-for-one stock split in year 3.

Calculate the price-weighted index and the value-weighted index.

Calculate the percentage change from year 2 to year 3 for both indexes.

PPS=Price per share. S/O= Shares outstanding

A small video chain is deciding whether to engage in a new line of delivery business, which implies setting up a page where customers could choose movies based on available in-store inventory and pick a time for delivery. The purpose of this analysis is to obtain an estimate of the net present value of this project, which requires an upfront investment of $800,000. Half of this amount will come from a debt of $750,000 (held in perpetuity). Currently, the firm. is unlevered. Assume that the cost of debt is 6.8%, the corporate tax is 40% and the return required by equity investors in the all-equity firm is 15.8%. The firm is planning to run the new line of delivery only for the next 5 years. The following financial information is available regarding the expected cash flows of the new line of delivery (in $ thousands):

Questions:

1. Calculate the unlevered present value

2. Calculate the present value of the expected interest tax shields

3. Calculate the APV.

4. Why is APV a preferable method to WACC in this situation? How do their assumptions differ?

a) Referring to Case Requirement 3 ai, allocate the contract price of $245,000 to each performance obligation. Explain in your own words and provide citation from ASC 606.

b) For each performance obligation in Case Requirement 3ai, should TSA recognize revenue at a point in time or over time? Explain in your own words and provide citation from ASC 606.

Requirement 3

Assume that TSA, Inc. entered into a contract with client Anon for $230,000 on January 1, Year 1, to transfer a software license and an additional $15,000 for installation of the software. The license entitles Anon to use the software in its current form over an unlimited period and does not include updates. Two years of customer support come free with the license. In recent stand-alone contracts with other customers for the same software, TSA has charged $200,000 for the software license,

$40,000 for two-year customer support, and $20,000 for installation. The software is usable without customer support from TSA and it can be installed by other vendors. The installation is expected to take 250 hours, of which 150 hours will be required in Year 1 and the remainder in Year 2. The entire fee of $245,000 is collected on the contract date. Base your answers on the current ASC 606.

1. Determine the number of performance obligations, and the contract price to be allocated to each, in the following situations:
   1. Problem 3ai: The installation service does not modify the software.

Discussion Post Chapter 11: Pricing Strategy

Instructions

Write a post for the Discussion Forum on this topic, addressing the questions below. You may use either a written paragraph or bullet-point format. Part 1 should be 2–3 paragraphs in length or an equivalent amount of content in bullet-point form. Responses to your classmates’ posts should be 1–2 paragraphs or several bullet points in length.

Part 1: Pricing Strategy

Briefly describe pricing for your product or service. How does this compare to competitors, assuming competitors are at or near break-even point with their pricing? Analyze pricing alternatives and make recommendations about pricing going forward based on the following:

• How sensitive are your customers to changes in price?
• What revenue do you need to break even and achieve profitability?

• What does the price say about your product in terms of value, quality, prestige, etc.?

Part 2: Respond to Classmates’ Posts

After you have created your own post, look over the discussion forum posts of your classmates and respond to at least two of them.

Part 3: Incorporate Feedback

Review the feedback you receive from classmates and your instructor. Use this feedback to revise and improve your work before submitting it as part of the “Complete Marketing Plan” assignment.

For this discussion forum, discuss the reasonableness of the thesis that investors should forego investing in individual stocks and bonds and instead place their monies into "index funds" and "exchange traded funds or ETFs". What flaws can you uncover with this approach? How does this approach fair in today's markets where we have significant swings in security prices as well as those of index funds and ETFs?