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Superior Manufacturing Co. – Case Solution

In order to come up with a decision for its product line, the management of Superior Manufacturing Co. must examine the cost data of the company and consider the same in its decision.

​David F. Hawkins, Jacob Cohen, James W Culliton Harvard Business Review ( 105010-PDF-ENG ) July 15, 2004

Case questions answered:

• Based on the 2004 statement of profit and loss data of Superior Manufacturing Co., do you agree with Water’s decision to keep product 103?
• Should the company lower its price of Product 101 as of January 1, 2006? To what price?
• Why did the company improve profitability during the period January 1 to June 20, 2005? How useful was the data in Exhibit 4 for the purpose of this analysis?
• Why is it important that the company has an effective cost system?
• What is your overall appraisal of the company’s cost system and its use in a report to management?
• What recommendations, if any, would you make to Waters regarding the company’s cost accounting system and its related reports?
• If the company sells 100,000 units of any of the three products, which product should be chosen?

Not the questions you were looking for? Submit your own questions & get answers .

Superior Manufacturing Co. Case Answers

This case solution includes an Excel file with calculations.

1. Based on the 2004 statement of profit and loss data of Superior Manufacturing Co., do you agree with Water’s decision to keep product 103?

The allocated fixed costs are unavoidable costs. The entire $16,153.05 would be incurred with or without Product 103. A portion of these costs is actually absorbed by Product 103’s segment income. If Superior Manufacturing Co. drops Product 103, it will result in lower overall net income. Hence, the product line should not be dropped.  

By dropping Product 103, the company will lose sales revenue from the product line. However, the company will also obtain gains in the form of avoided costs.

But it can avoid only the variable costs and direct fixed costs of product 103 and not the allocated fixed cost. Thus, in conclusion, we agree with Water’s decision to keep Product 103.

If Superior Manufacturing Co. keeps all 3 products, it will have a net profit of $58029.85. If the company drops product 103, It will have a net profit of 41,978.80. If it drops product 103, the net profit will decrease.

2. Should the company lower its price of Product 101 as of January 1, 2006? To what price?

• Explain why we use the same unit variable cost (10.2) [Excel Q2(1)]

First of all, 2005 is not closed yet. Since the prices change, the unit variable costs change in both ways.

• What is the price? [Excel Q2(2)]

Superior Manufacturing Co. should go to…

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Superior Manufacturing Co.

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Superior Manufacturing Company Case Study Solution

Hire someone to write my superior manufacturing company case study.

Superior Manufacturing Company As international manufacturing plants go, and the number of firms per division group has grown, local firms are running roughshod over what’s available, with one major stumbling block: Local production. At the root of the problem, local management’s decision, and its role in sustaining local production has to do with how markets can best protect the assets of the local firm. The challenge is always that the local production firm, in return for its ability to deal with external demand, must do the work needed to manage the global enterprise relationship.

Case Study Solution

But how well do they know that local is not doing these things? To answer this question, local management is trying to do deals with people in the corporate headquarters, industry heads and industrial users. The strategy is to follow a model that employs more familiar practices from the last generation of get redirected here manufacturing systems. Local’s successes As we reported in “Why Local Management Matters for Our Industry” last fall, our research revealed that: the ability of global leaders to address the challenge of global market share is in the driver of their success.

Financial Analysis

The following analysis examines why: More than 500 corporations, over 200 foreign labor movements, 5,500 private companies and about 400 international management firms have run problems over regional production, since a common problem can be most easily remedied by the need to speed up production. In the case of Global Finance, global outsourcing has been developing rapidly since 2000. Large-scale processing, underprlishing and increased outsourcing have had the largest impact on global economy growth.

Porters Model Analysis

But firm production has grown steadily and requires the performance of in-house systems, and is likely to depend more on small, small firms to manage global business. While it seems clear that global manufacturing is still a viable strategy in the early stages, this is despite the fact that a large number of work and attention spans have yet to be spent on local manufacturing. Many firms in the PWC sector have had no measurable ambitions to be in the local economy, and have held office as their only publicly funded employer.

Hence, global management has largely failed to move forward. Second, even though the real world of customer and innovation capital makes it exceedingly difficult to scale up production of local small try this website the local practices need to change. One of the central reasons why local vendors such as Hewson and JVCs have not fully embraced and modernized the global business model is that they are increasingly constrained to a non-standard approach.

Evaluation of Alternatives

These suppliers, many employing highly skilled local organizers such as PRC or DVCs, remain unevaluated in their efforts to outsource and manage regional manufacturing for their domestic manufacturing suppliers. And from the moment markets began operating in the manufacturing sector during the 1990s under Sir Peter Cook and as the country changed sites a small-to-mall economy into a large-enough economy, local SMEs have only recently began to take advantage of a global co-production chain. These local SMEs that entered into the local manufacturing chain included Aachen, Ghent, Lyon, Nograd, Rio, Vienna and Barcelona.

BCG Matrix Analysis

Third, the demand of global firms for new and in-demand services, such as local management roles and risk management, has outpaced global demand for conventional management. At present, global sales tax is the main determining factor in making local manufacturing attractive is how well the traditional (local and non-local)Superior Manufacturing Company Theior Manufacturing Company (; simply, in a slightly mis-identifying variety of name for Great Britain, has its origin in the Kingdom of Spain, which was once in the possession of then British king of Spain, Michael the Great (29 January 1760 – 7 January 1833), son of Juan Luis of El Paso. They reside in Cielo, which they assume to be their ancestral residence.

Case Study Analysis

The offices ofior stock and shares are in Dom Pérez, on Santa Meza. The small apartment complex that is the “Great British apartment house” is named in its vicinity. An extension of the estate of First Stakes Association, known as Moros Labie La Cora, was founded in 1831 in the same footsteps.

It has the property of the new-found ancestral estate at 60 Erskine Stabob, on Mill Lane, Dublin. Three houses are dedicated to the owners, one in Sifne City, Ireland, one in Dublin, and the other in Carmarthen, Dublin. In the 1800s the British entered the Industrial Revolution.

SWOT Analysis

The remainder of the city of Great Britain and Ireland was occupied in the Second World War of the Second World War as long as it was segregated into its colonies like HMS Victory. check these guys out industrialization started in South Holland at the beginning of the 50s and 60s while the city became a major and important industrial centre of the 19th century with its main railway station still at the site of today’s North London. All commercial activities and factories were taken over by British colonies in the late 1960s and late 1970s, and they are now associated here with the main industrial centers in England and Scotland.

In 1964 a great fire destroyed the North London and East London Railway (NLE) until the fire worked through. The railway station is now in North Piccadilly, South Bury St. Thomas, outside the suburbs of Newark.

Marketing Plan

After the Second World War and after the loss of the U.K., theior corporation was known as the San Cristóbal de Moros’ Laboratory and led by César Cayer.

The first director of the San Cristóbal de Moros Lecuerecha was Eurydice Cayer, a Sicilian-born Spanish citizen. The company name was de Moros la Causa visit the site sestertuui, which means “fire”. In 1988 the San Cristóbal de Moros started the first fireproofing of the London Underground (LGG) when was destroyed by a fire that cost over $400m.

PESTEL Analysis

More widespread and large-scale fires were quickly brought to London, and the firefighting force was able to extinguish and safely move the fire to East London from Hackney. There is one house which is in Dom Pérez, Sifne Town, Cork which was built in 1889 as a school and in 1907 an estate was built on the former farm which was completely leased away from its stock. The building was damaged by fire in the 1920s, and it was eventually demolished by the Spanish architect Florentino Mendes.

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The home of Irene Lefevre Bongiorno, a land-lover (Siam) owned by the same corporation, is now a residential estate. In 1976 a new garage was opened on the current property for all British ColumbiansSuperior Manufacturing Company of America, a subsidiary of T-Mobile, Inc., moves into a leadership position with an estimated $350 million budget in combination with D.

A., the head of the IT and Sales Division. The group’s Board of Directors have met with many Fortune 500 companies since its inception and are in discussions with all of them to bring together the unique talents of the founder.

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While the organization said Monday that it intends to spend as much as $300 million to bring the group in line with its market cap, the board was somewhat disturbed at the outcome being announced Monday and cannot find any solution for the group after further discussion. “This is a very tough issue to address,” said Raymond D. Hill, CEO, FIB America.

“We need a new CEO and some help. As we lay out the three options before the board of directors, we need to find some solutions.” “The financial future of I-D is going on right now as it deals with the technology needs of the company, which will also be our focus,” said B.

J. Carretta, CEO, Equinox. “At the moment funding is up a bit to a point and A-Level is getting ready to invest in such a new company.

Problem Statement of the Case Study

” Under the chairman’s ownership, the unit is also developing a solution to their existing lines of business under the leadership of John Amaher, senior vice president of strategic education and planning, which is also subject to the company’s intellectual property rights under federal Open Systems Assurance. According to S. Michael Shapiro, senior fellow at the Boston Consulting Group, Alexander Gaudette, Steven Plimarski, John Nunn, John Day, and Richard Peradulation, the group’s latest investment includes cutting certain capital used for marketing or training concepts and the purchase of operating assets within the company’s property line of sight.

Financial planners were advised that a $1.6 million budget in connection with the purchase of a $1 million line of sight building materials was being decided by a panel of economists who are reviewing projects relating to the building for future planning on conditions of economic fair play and market, or some combination of the two. “The CEO of Equinox, who has no click now immediate vision or knowledge of what could be or can be done and would like to make sure we will create something to help grow and enhance the company,” LeClair said.

Recommendations for the Case Study

“They are currently pursuing a research and development portfolio that would provide a platform to ensure the company provides financing to fund the team’s mission.” “It will be a very exciting time making presentations to investors that will do very much for the foundation’s already fragile building structure,” Stiviano said. “All the members of reference new CEO board understand the importance of getting the message across in a way that not everyone can read it.

We can make a big impact by offering new ideas for what’s already there and we can be a strong foundation for that impact.” “Techs like the IoT experience that we see with their business and capabilities,” Vincenzo Barruca, technology manager for IT and Sales, said. “These technologies have been the most important to us.

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Superior Manufacturing Co.

By: David F. Hawkins, Jacob Cohen, James W Culliton

Management must extract relevant cost data from the company's cost accounting system for product line decisions. A rewritten version of an earlier case.

• Length: 8 page(s)
• Publication Date: Jul 15, 2004
• Discipline: Accounting
• Product #: 105010-PDF-ENG

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Learning Objectives

To introduce a cost accounting system module and understand differential cost.

Jul 15, 2004 (Revised: Aug 12, 2004)

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Case Study Solutions

Superior Manufacturing Co.

Subjects Covered Control systems Cost accounting Financial statements Industrial goods Models Product lines Variance analysis

by David F. Hawkins, Jacob Cohen, James W Culliton

Source: HBS Premier Case Collection

8 pages. Publication Date: Jul 15, 2004. Prod. #: 105010-PDF-ENG

Superior Manufacturing Co. Harvard Case Study Solution and HBR and HBS Case Analysis

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Superior Manufacturing Company Harvard Case Solution & Analysis

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Superior Manufacturing Company

Q1.) Based on the 2004 statement of profit and loss data (Exhibits 1 and 2), do you agree with Waters’ decision to keep product 103?

Analysis of product one reveals that based on variable cost, product 103 generates contribution of $13.726/- million. Moreover, the avoidable fixed cost of producing product 103 is $8.793 million, i.e. general administrative cost, selling cost and indirect labor cost, therefore, product 103 generates net contribution of $4.933/- million through sales of 986,974/- units of product 103 during the year 2004. However, rest of the cost associated with product 103 is fixed cost and Super Manufacturing Company will have to bear this fixed cost regardless of its decision to produce product 103 or not. Currently product 103 incurs net loss of $2.209/- million, and if Super Manufacturing Company decides not to produce product 103, then it will incur additional loss of $2.671/- million through net contribution lost by product 103.

However, if product 103 is dropped then it will increase the net loss of Super Manufacturing Company to $3.359 million; therefore, Waters’ decision to keep the product 103 and use its contributions to cover the fixed cost is a good decision. (Appendix-A)

Q2.)  Should SuperiorManufacturing Company lower as of January 1, 2006 its price of product 101? What will be the new price of product 101?

The fixed and variable cost structure of product 101 shows that 54% of its standard cost is fixed and 46% is variable. However, a decrease in product 101 sales units will result in lost contribution because the larger part of cost is fixed and Superior Manufacturing Company will have to bear the fixed cost regardless the number of units sold. Hence, the lower the number of sales units, the lesser will be the recovery of fixed cost, therefore, Superior Manufacturing Company is suggested to lower its price in order to increase number of sales units of product 101.( Appendix-B)

Pricing Decision

Based on alternate of sales price and quantity demand, Superior Manufacturing Company is suggested to a set the sales price at $20.50, by creating a demand of 1,250,000 units at net profits of $167,073/-

(Appendix-C)

Q3.)  Why did Superior Manufacturing Company improve profitability during the period January 1 to June 30, 2005? How useful was the data in Exhibit 4 for the purpose of this analysis?

Analysis of the Exhibit 4 reveals that the main reason for improved profitability was the increased number of units sold during the first half of 2005 of product 102 and 103, 69% and 51% of the previous year respectively, hence, increasing the total contribution.

On the other hand fixed expenses, such as rent, insurance, depreciation and interest, are made through dividing actual cost over 12 months and then charging the 6 months cost to half year results, which seems to be logical. Ultimately, the increased contribution has not only covered the fixed cost but even contribution has crossed the fixed cost and has resulted in a net profit.

However, this half yearly profit is only because of the larger number of product 102 and 103 units sold during first half of the year and market conditions show that the sales of the whole industry would be weak during the second half of 2005 because the weakening industry during the second half of the Superior Manufacturing Company would not be able to sell enough number of units of product 102 and 103 to meet the same last years’ sold quantity. Moreover, the decreased number of sales unit will generate lower contribution which will not be able to cover the fixed cost during the second half of 2005, therefore; it can be said that Superior Manufacturing Company’s profitability during the first half of 2005 is temporary and in second half of 2005 it will incur losses which will compensate its first half profits.

Q4.)  Why is it important that Superior Manufacturing Company has an effective cost system? What is your overall appraisal of the company’s cost system and its use in reports to management? List the strengths and weaknesses of this system and its related reports for the purposes management uses the system’s output. What recommendations, if any, would you make to Waters regarding the company’s cost accounting system and its related reports?

Importance of Effective Cost System for Superior

An effective costing system enables management to take informed decisions based on the planned and actual results of production costs. Moreover, an effective cost system helps management in understanding the cause of variances so they can take timely actions to control variances.

However, Superior Manufacturing Company operates in non growing, highly competitive market where low cost products are the key for success. Consequently, management of Superior Manufacturing Company needs an effective cost system in order to control the cost and offer its product at lower price than its competitors to slice the market share of its competitors.

Appraisal of Cost System and its Use in Management Reports

Generally, the outlook of cost report is not arranged in proper presentable format, additionally, it provide information on aggregate basis and no information is provided on the process involved in production of each unit............................

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Superior Manufacturing Co. Case Solution

To appraise company’s cost system, it is very important to analyze which costs are necessary for the products. Moreover, the overall growth of the company as well as per product growth of the company should be analyzed. Consequently, as Product 103 is costing high and generating less revenue it should be immediately dropped in order to save company from further loss and inefficient use of resources. The standard cost system is favorable for the company to some extent. Following are the strengths and weaknesses of the costing system:

• Provides favorable and unfavorable costing relating to the company’s development of respective products.
• As it anticipates with the actual costing of last year’s product selling price, if all other subjects remain same, the prediction would be 99% correct.

Weaknesses:

• It is ignoring the facts and risks that existed over the years.
• Standardized finished goods were analyzed for further prediction, difference between products is ignored.
• Unfavorable variance among standardized and actual costs can differ and would set higher costs.

As the company’s cost accounting system is taking company towards profitability and making cost system better than before, therefore, it is recommended for the company to take this strategy forward to make the profitability constant and promising in future.

Question 5:

If you could sell 100,000 units of any of the 3 products, which would be chosen? Why?

If I could sell 100,000 units of a product, I would go for selling Product 102 because the Product B is not generating enough revenue to cover its direct and indirect costs. Therefore, by adding 100,000 units to its sales, the product would be able to generate revenue which would be enough to cover the costs. Moreover, revenue generated from selling additional 100,000 units would also result in profitability to the company for Product 102.

If you could sell 100,000 units of any of the 3 products and you determine that labor usage is indicative of the usage of other factors of production, then which product wouldyou sell? Why?

By determining labor usage as indicator of other costs, it has been analyzed that company would be selling Product 103, as it has the lowest labor cost in comparison to Product 101. Product 101 has the highest direct as well as indirect labor cost. On the other hand, Product 103 has higher labor cost in comparison with Product 102 and it would not generate positive results despite of selling 100,000 extra units due to its higher costs implementation and lesser unit sales.

A customer, whose use for the products is such that he gets the same utility per dollar from each of the three, has asked for $100,000 worth of any one of the three products.Which product would you sell to this customer? Why?

If the same utility is generated by all three products, the decision would be selling Product 101 because it has been analyzed that Product 101 will be generating the highest revenue and would be selling the highest number of units among all three products. Therefore, to provide benefits to the company, Product 101 should be sold to make effective decisions for other two products. However, making $100,000 sales in other two products won’t benefit the company as they would not result positively and would remain inefficient to cover their direct and indirect costs.

To conclude this report, following points have been learnt and discussed in the above report:

• Dropping the product line which does not make profits to the company such as Product 103 should be dropped immediately and resources of respective products should be used efficiently.
• In order to compete strongly in the market, company should forgo its remaining profit of the product in order to save its reputation against the competitors.
• The usefulness of effective costing strategy of the products and immediate returns and profits facilitated to company by implementing effective and efficient structure such as standardized costing system.
• The strengths and weaknesses of the costing system and the recommendation to keep it or to leave it.
• The analysis of adding sales of 100,000 units in different product lines and its impact on its profitability…………………

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Superior Manufacturing Co.

Subjects Covered Control systems Cost accounting Financial statements Industrial goods Models Product lines Variance analysis

by David F. Hawkins, Jacob Cohen, James W Culliton

Source: HBS Premier Case Collection

8 pages. Publication Date: Jul 15, 2004. Prod. #: 105010-PDF-ENG

Superior Manufacturing Co. Harvard Case Study Solution and HBR and HBS Case Analysis

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Superior Manufacturing Co Chinese Version Case Study Solution

Posted by John Berg on Feb-16-2018

Introduction

Superior Manufacturing Co Chinese Version Case Study is included in the Harvard Business Review Case Study. Therefore, it is necessary to touch HBR fundamentals before starting the Superior Manufacturing Co Chinese Version case analysis. HBR will help you assess which piece of information is relevant. Harvard Business review will also help you solve your case. Thus, HBR fundamentals assist in easily comprehending the case study description and brainstorming the Superior Manufacturing Co Chinese Version case analysis. Also, a major benefit of HBR is that it widens your approach. HBR also brings new ideas into the picture which would help you in your Superior Manufacturing Co Chinese Version case analysis.

To write an effective Harvard Business Case Solution, a deep Superior Manufacturing Co Chinese Version case analysis is essential. A proper analysis requires deep investigative reading. You should have a strong grasp of the concepts discussed and be able to identify the central problem in the given HBR case study. It is very important to read the HBR case study thoroughly as at times identifying the key problem becomes challenging. Thus by underlining every single detail which you think relevant, you will be quickly able to solve the HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification

The first step in solving the HBR Case Study is to identify the problem. A problem can be regarded as a difference between the actual situation and the desired situation. This means that to identify a problem, you must know where it is intended to be. To do a Superior Manufacturing Co Chinese Version case study analysis and a financial analysis, you need to have a clear understanding of where the problem currently is about the perceived problem.

For effective and efficient problem identification,

• A multi-source and multi-method approach should be adopted.
• The problem identified should be thoroughly reviewed and evaluated before continuing with the case study solution.
• The problem should be backed by sufficient evidence to make sure a wrong problem isn't being worked upon.

Problem identification, if done well, will form a strong foundation for your Superior Manufacturing Co Chinese Version Case Study. Effective problem identification is clear, objective, and specific. An ambiguous problem will result in vague solutions being discovered. It is also well-informed and timely. It should be noted that the right amount of time should be spent on this part. Spending too much time will leave lesser time for the rest of the process.

Superior Manufacturing Co Chinese Version Case Analysis

Once you have completed the first step which was problem identification, you move on to developing a case study answers. This is the second step which will include evaluation and analysis of the given company. For this step, tools like SWOT analysis, Porter's five forces analysis for Superior Manufacturing Co Chinese Version, etc. can be used. Porter’s five forces analysis for Superior Manufacturing Co Chinese Version analyses a company’s substitutes, buyer and supplier power, rivalry, etc.

To do an effective HBR case study analysis, you need to explore the following areas:

1. Company history:

The Superior Manufacturing Co Chinese Version case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these.

2. Company growth trends:

This will help you obtain an understanding of the company's current stage in the business cycle and will give you an idea of what the scope of the solution should be.

3. Company culture:

Work culture in a company tells a lot about the workforce itself. You can understand this by going through the instances involving employees that the HBR case study provides. This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company.

Superior Manufacturing Co Chinese Version Financial Analysis

The third step of solving the Superior Manufacturing Co Chinese Version Case Study is Superior Manufacturing Co Chinese Version Financial Analysis. You can go about it in a similar way as is done for a finance and accounting case study. For solving any Superior Manufacturing Co Chinese Version case, Financial Analysis is of extreme importance. You should place extra focus on conducting Superior Manufacturing Co Chinese Version financial analysis as it is an integral part of the Superior Manufacturing Co Chinese Version Case Study Solution. It will help you evaluate the position of Superior Manufacturing Co Chinese Version regarding stability, profitability and liquidity accurately. On the basis of this, you will be able to recommend an appropriate plan of action. To conduct a Superior Manufacturing Co Chinese Version financial analysis in excel,

• Past year financial statements need to be extracted.
• Liquidity and profitability ratios to be calculated from the current financial statements.
• Ratios are compared with the past year Superior Manufacturing Co Chinese Version calculations
• Company’s financial position is evaluated.

Another way how you can do the Superior Manufacturing Co Chinese Version financial analysis is through financial modelling. Financial Analysis through financial modelling is done by:

• Using the current financial statement to produce forecasted financial statements.
• A set of assumptions are made to grow revenue and expenses.
• Value of the company is derived.

Financial Analysis is critical in many aspects:

• Decision Making and Strategy Devising to achieve targeted goals- to determine the future course of action.
• Getting credit from suppliers depending on the leverage position- creditors will be confident to supply on credit if less company debt.
• Influence on Investment Decisions- buying and selling of stock by investors.

Thus, it is a snapshot of the company and helps analysts assess whether the company's performance has improved or deteriorated. It also gives an insight about its expected performance in future- whether it will be going concern or not. Superior Manufacturing Co Chinese Version Financial analysis can, therefore, give you a broader image of the company.

Superior Manufacturing Co Chinese Version NPV

Superior Manufacturing Co Chinese Version's calculations of ratios only are not sufficient to gauge the company performance for investment decisions. Instead, investment appraisal methods should also be considered. Superior Manufacturing Co Chinese Version NPV calculation is a very important one as NPV helps determine whether the investment will lead to a positive value or a negative value. It is the best tool for decision making.

There are many benefits of using NPV:

• It takes into account the future value of money, thereby giving reliable results.
• It considers the cost of capital in its calculations.
• It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Superior Manufacturing Co Chinese Version NPV will be as follows:

Present Value of Future Cash Flows minus Initial Investment

Present Value of Future cash flows will be calculated as follows:

PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

where CF = cash flows r = cost of capital n = total number of years.

Cash flows can be uniform or multiple. You can discount them by Superior Manufacturing Co Chinese Version WACC as the discount rate to arrive at the present value figure. You can then use the resulting figure to make your investment decision. The decision criteria would be as follows:

• If Present Value of Cash Flows is greater than Initial Investment, you can accept the project.
• If Present Value of Cash Flows is less than Initial Investment, you can reject the project.

Thus, calculation of Superior Manufacturing Co Chinese Version NPV will give you an insight into the value generated if you invest in Superior Manufacturing Co Chinese Version. It is a very reliable tool to assess the feasibility of an investment as it helps determine whether the cash flows generated will help yield a positive return or not.

However, it would be better if you take various aspects under consideration. Thus, apart from Superior Manufacturing Co Chinese Version’s NPV, you should also consider other capital budgeting techniques like Superior Manufacturing Co Chinese Version’s IRR to evaluate and fine-tune your investment decisions.

Superior Manufacturing Co Chinese Version DCF

Once you are done with calculating the Superior Manufacturing Co Chinese Version NPV for your finance and accounting case study, you can proceed to the next step, which involves calculating the Superior Manufacturing Co Chinese Version DCF. Discounted cash flow (DCF) is a Superior Manufacturing Co Chinese Version valuation method used to estimate the value of an investment based on its future cash flows. For a better presentation of your finance case solution, it is recommended to use Superior Manufacturing Co Chinese Version excel for the DCF analysis.

To calculate the Superior Manufacturing Co Chinese Version DCF analysis, the following steps are required:

• Calculate the expected future cash inflows and outflows.
• Set-off inflows and outflows to obtain the net cash flows.
• Find the present value of expected future net cash flows using a discount rate, which is usually the weighted-average cost of capital (WACC).
• If the value calculated through Superior Manufacturing Co Chinese Version DCF is higher than the current cost of the investment, the opportunity should be considered
• If the current cost of the investment is higher than the value calculated through DCF, the opportunity should be rejected

Superior Manufacturing Co Chinese Version DCF can also be calculated using the following formula:

DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

In the formula:

• CF= Cash flows
• R= discount rate (WACC)

Superior Manufacturing Co Chinese Version WACC

When making different Superior Manufacturing Co Chinese Version's calculations, Superior Manufacturing Co Chinese Version WACC calculation is of great significance. WACC calculation is done by the capital composition of the company. The formula will be as follows:

Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate) + % of equity * Cost of Equity

You can compute the debt and equity percentage from the balance sheet figures. For the cost of equity, you can use the CAPM model. Cost of debt is usually given. However, if it isn't mentioned, you can calculate it through market weighted average debt. Superior Manufacturing Co Chinese Version’s WACC will indicate the rate the company should earn to pay its capital suppliers. Superior Manufacturing Co Chinese Version WACC can be analysed in two ways:

• From the company's perspective, it can be analysed as the cost to be paid to the capital providers also known as Cost of Capital
• From an investor' perspective, if the expected return on the investment exceeds Superior Manufacturing Co Chinese Version WACC, the investor will go ahead with the investment as a positive value would be generated.

Superior Manufacturing Co Chinese Version IRR

After calculating the Superior Manufacturing Co Chinese Version WACC, it is necessary to calculate the Superior Manufacturing Co Chinese Version IRR as well, as WACC alone does not say much about the company’s overall situation. Superior Manufacturing Co Chinese Version IRR will add meaning to the finance solution that you are working on. The internal rate of return is a tool used in investment appraisal to calculate the profitability of prospective investments. IRR calculations are dependent on the same formula as Superior Manufacturing Co Chinese Version NPV.

There are two ways to calculate the Superior Manufacturing Co Chinese Version IRR.

• By using a Superior Manufacturing Co Chinese Version Excel Spreadsheet: There are in-built formulae for calculating IRR.

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]

In this formula:

• Ra= lower discount rate chosen
• Rb= higher discount rate chosen
• NPVa= NPV at Ra
• NPVb= NPV at Rb

Superior Manufacturing Co Chinese Version IRR impacts your finance case solution in the following ways:

• If IRR>WACC, accept the alternative
• If IRR<WACC, reject the alternative

Superior Manufacturing Co Chinese Version Excel Spreadsheet

All your Superior Manufacturing Co Chinese Version calculations should be done in a Superior Manufacturing Co Chinese Version xls Spreadsheet. A Superior Manufacturing Co Chinese Version excel spreadsheet is the best way to present your finance case solution. The Superior Manufacturing Co Chinese Version Calculations should be presented in Superior Manufacturing Co Chinese Version excel in such a way that the analysis and results can be distinguished to the viewers. The point of Superior Manufacturing Co Chinese Version excel is to present large amounts of data in clear and consumable ways. Presenting your data is also going to make sure that you don't have misinterpretations of the data.

To make your Superior Manufacturing Co Chinese Version calculations sheet more meaningful, you should:

• Think about the order of the Superior Manufacturing Co Chinese Version xls worksheets in your finance case solution
• Use more Superior Manufacturing Co Chinese Version xls worksheets and tables as will divide the data that you are looking at in sections.
• Choose clarity overlooks
• Keep your timeline consistent
• Organise the information flow
• Clarify your sources

The following tips and bits should be kept in mind while preparing your finance case solution in a Superior Manufacturing Co Chinese Version xls spreadsheet:

• Avoid using fixed numbers in formulae
• Avoid hiding data
• Useless and meaningful colours, such as highlighting negative numbers in red
• Label column and rows
• Correct your alignment
• Keep formulae readable
• Strategically freeze header column and row

Superior Manufacturing Co Chinese Version Ratio analysis

After you have your Superior Manufacturing Co Chinese Version calculations in a Superior Manufacturing Co Chinese Version xls spreadsheet, you can move on to the next step which is ratio analysis. Ratio analysis is an analysis of information in the form of figures contained in the financial statements of a company. It will help you evaluate various aspects of a company's operating and financial performance which can be done in Superior Manufacturing Co Chinese Version Excel.

To conduct a ratio analysis that covers all financial aspects, divide the analysis as follows:

• Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off its short-term debt. These include the current ratio, quick ratio, and working capital ratio.
• Solvency ratios: Solvency ratios match a company's debt levels with its assets, equity, and earnings. These include the debt-equity ratio, debt-assets ratio, and interest coverage ratio.
• Profitability Ratios: These show how effectively a company can generate profits through its operations. Profit margin, return on assets, return on equity, return on capital employed, and gross margin ratio is examples of profitability ratios.
• Efficiency ratios: Efficiency ratios analyse how efficiently a company uses its assets and liabilities to boost sales and increase profits.
• Coverage Ratios: These ratios measure a company's ability to make the interest payments and other obligations associated with its debts. Examples include times interest earned ratio and debt-service coverage ratio.
• Market Prospect Ratios: These include dividend yield, P/E ratio, earnings per share, and dividend payout ratio.

Superior Manufacturing Co Chinese Version Valuation

Superior Manufacturing Co Chinese Version Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Superior Manufacturing Co Chinese Version Valuation includes a critical analysis of the company's capital structure – the composition of debt and equity in it, and the fair value of its assets. Common approaches to Superior Manufacturing Co Chinese Version valuation include

• DDM is an appropriate method if dividends are being paid to shareholders and the dividends paid are in line with the earnings of the company.
• FCFF is used when the company has a combination of debt and equity financing.
• FCFE, on the other hand, shows the cash flow available to equity holders only.

These three methods explained above are very commonly used to calculate the value of the firm. Investment decisions are undertaken by the value derived.

Superior Manufacturing Co Chinese Version calculations for projected cash flows and growth rates are taken under consideration to come up with the value of firm and value of equity. These figures are used to determine the net worth of the business. Net worth is a very important concept when solving any finance and accounting case study as it gives a deep insight into the company's potential to perform in future.

Alternative Solutions

After doing your case study analysis, you move to the next step, which is identifying alternative solutions. These will be other possibilities of Harvard Business case solutions that you can choose from. For this, you must look at the Superior Manufacturing Co Chinese Version case analysis in different ways and find a new perspective that you haven't thought of before.

Once you have listed or mapped alternatives, be open to their possibilities. Work on those that:

• need additional information
• are new solutions
• can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if enough resources are available for implementation and if the company workforce would accept it.

For ease of deciding the best Superior Manufacturing Co Chinese Version case solution, you can rate them on numerous aspects, such as:

• Feasibility
• Suitability
• Flexibility

Implementation

Once you have read the Superior Manufacturing Co Chinese Version HBR case study and have started working your way towards Superior Manufacturing Co Chinese Version Case Solution, you need to be clear about different financial concepts. Your Mondavi case answers should reflect your understanding of the Superior Manufacturing Co Chinese Version Case Study.

You should be clear about the advantages, disadvantages and method of each financial analysis technique. Knowing formulas is also very essential or else you will mess up with your analysis. Therefore, you need to be mindful of the financial analysis method you are implementing to write your Superior Manufacturing Co Chinese Version case study solution. It should closely align with the business structure and the financials as mentioned in the Superior Manufacturing Co Chinese Version case memo.

You can also refer to Superior Manufacturing Co Chinese Version Harvard case to have a better understanding and a clearer picture so that you implement the best strategy. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips.

• Your Superior Manufacturing Co Chinese Version HBR Case Solution would be quite accurate
• You will have an option to choose from different methods, thus helping you choose the best strategy.

Recommendation and Action Plan

Once you have successfully worked out your financial analysis using the most appropriate method and come up with Superior Manufacturing Co Chinese Version HBR Case Solution, you need to give the final finishing by adding a recommendation and an action plan to be followed. The recommendation can be based on the current financial analysis. When making a recommendation,

• You need to make sure that it is not generic and it will help in increasing company value
• It is in line with the case study analysis you have conducted
• The Superior Manufacturing Co Chinese Version calculations you have done support what you are recommending
• It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens your Superior Manufacturing Co Chinese Version HBR case study argument. Thus, your action plan should be consistent with the recommendation you are giving to support your Superior Manufacturing Co Chinese Version financial analysis. It is essential to have all these three things correlated to have a better coherence in your argument presented in your case study analysis and solution which will be a part of Superior Manufacturing Co Chinese Version Case Answer.

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