Control Example Business Name: The Café Around the Corner SMART Goal: Increase customer satisfaction by 10% within a six month time frame. Criterion being Measured: customer satisfaction Time Frame For Goal Completion: six months Explain the system that you will create to track the success of this goal? Every month, employee surveys will go out to the customers on our mailing list. There will also be surveys attached to each receipt to reach people that haven’t signed up for email. The surveys will ask a variety of questions meant to measure the customer experience and their opinion of Café Around the Corner. All surveys will be electronic and collected in an online database that management can access. The surveys will be sorted by the employee that took care of the customer. Why is being reliable and completing this goal on time important to the business’ success? Accomplishing these goals will increase the reputation and financial success of the business. It’s also important to reach these goals in a timely matter as other aspects of the business are relying on me to follow through with expectations. It’s important to be professional and reliable when faced with objectives to complete. What adjustments will you make if you fall behind completing this goal? I will continually track the survey scores as they come in. If the business starts to fall behind, I plan on bringing in outside consultants to work with my employees. The consultants will run twice a month trainings that will focus on improving customer satisfaction. Every employee is required to attend at least one a month. I will also begin rewarding employees that have the highest survey scores at the end of the month. This will improve motivation and create a customer service focus in the business culture. Publically sharing the monthly winners will also create recognition among the employees. These two methods will cover intrinsic and extrinsic motivation. Pg.587 3.  Universal Auto is a large multinational corporation headquartered in the United States. For segment reporting purposes, the company is engaged in two businesses: production of motor vehicles and information processing services. The motor vehicle business is by far the larger of Universal’s two segments. It consists mainly of domestic U.S. passenger car production, but it also includes small truck manufacturing operations in the United States and passenger car production in other countries. This segment of Universal has had weak operating results for the past several years, including a large loss in 2013. Although the company does not reveal the operating results of its domestic passenger car segments, that part of Universal’s business is generally believed to be primarily responsible for the weak performance of its motor vehicle segment. Idata, the information processing services segment of Universal, was started by Universal about 15 years ago. This business has shown strong, steady growth tha.

1. Control Example
Business Name: The Café Around the Corner
SMART Goal: Increase customer satisfaction by 10% within a
six month time frame.
Criterion being Measured: customer satisfaction
Time Frame For Goal Completion: six months
Explain the system that you will create to track the success of
this goal?
Every month, employee surveys will go out to the customers on
our mailing list. There will also be surveys attached to each
receipt to reach people that haven’t signed up for email. The
surveys will ask a variety of questions meant to measure the
customer experience and their opinion of Café Around the
Corner. All surveys will be electronic and collected in an
online database that management can access. The surveys will
be sorted by the employee that took care of the customer.
Why is being reliable and completing this goal on time
important to the business’ success?
Accomplishing these goals will increase the reputation and
financial success of the business. It’s also important to reach
these goals in a timely matter as other aspects of the business
are relying on me to follow through with expectations. It’s
important to be professional and reliable when faced with
objectives to complete.
What adjustments will you make if you fall behind completing
this goal?
I will continually track the survey scores as they come in. If
the business starts to fall behind, I plan on bringing in outside
consultants to work with my employees. The consultants will
run twice a month trainings that will focus on improving

2. customer satisfaction. Every employee is required to attend at
least one a month.
I will also begin rewarding employees that have the highest
survey scores at the end of the month. This will improve
motivation and create a customer service focus in the business
culture. Publically sharing the monthly winners will also create
recognition among the employees. These two methods will
cover intrinsic and extrinsic motivation.
Pg.587
3. Universal Auto is a large multinational corporation
headquartered in the United States. For segment reporting
purposes, the company is engaged in two businesses: production
of motor vehicles and information processing services.
The motor vehicle business is by far the larger of Universal’s
two segments. It consists mainly of domestic U.S. passenger car
production, but it also includes small truck manufacturing
operations in the United States and passenger car production in
other countries. This segment of Universal has had weak
operating results for the past several years, including a large
loss in 2013. Although the company does not reveal the
operating results of its domestic passenger car segments, that
part of Universal’s business is generally believed to be
primarily responsible for the weak performance of its motor
vehicle segment.
Idata, the information processing services segment of Universal,
was started by Universal about 15 years ago. This business has
shown strong, steady growth that has been entirely internal; no
acquisitions have been made.

3. An excerpt from a research report on Universal prepared by
Paul Adams, a CFA candidate, states: “Based on our assumption
that Universal will be able to increase prices significantly on
U.S. passenger cars in 2014, we project a multibillion dollar
profit improvement.”
a. Discuss the concept of an industrial life cycle by describing
each of its four phases.
b. Identify where each of Universal’s two primary businesses—
passenger cars and information processing—is in such a cycle.
c. Discuss how product pricing should differ between
Universal’s two businesses, based on the location of each in the
industrial life cycle.
11. The FI Corporation’s dividends per share are expected to
grow indefinitely by 5% per year.
a. If this year’s year-end dividend is $8 and the market
capitalization rate is 10% per year, what must the current stock
price be according to the DDM?
b. If the expected earnings per share are $12, what is the
implied value of the ROE on future investment opportunities?
c. How much is the market paying per share for growth
opportunities (i.e., for an ROE on future investments that
exceeds the market capitalization rate)?
12. The stock of Nogro Corporation is currently selling for $10
per share. Earnings per share in the coming year are expected to
be $2. The company has a policy of paying out 50% of its
earnings each year in dividends. The rest is retained and
invested in projects that earn a 20% rate of return per year. This
situation is expected to continue indefinitely.

4. a. Assuming the current market price of the stock reflects its
intrinsic value as computed using the constant-growth DDM,
what rate of return do Nogro’s investors require?
b. By how much does its value exceed what it would be if all
earnings were paid as dividends and nothing were reinvested?
c. If Nogro were to cut its dividend payout ratio to 25%, what
would happen to its stock price? What if Nogro eliminated the
dividend?
13. The risk-free rate of return is 8%, the expected rate of
return on the market portfolio is 15%, and the stock of Xyrong
Corporation has a beta coefficient of 1.2. Xyrong pays out 40%
of its earnings in dividends, and the latest earnings announced
were $10 per share. Dividends were just paid and are expected
to be paid annually. You expect that Xyrong will earn an ROE
of 20% per year on all reinvested earnings forever.
a. What is the intrinsic value of a share of Xyrong stock?
6. Suppose you think FedEx stock is going to appreciate
substantially in value in the next 6 months. Say the stock’s
current price, S0, is $100, and the call option expiring in 6
months has an exercise price, X, of $100 and is selling at a
price, C, of $10. With $10,000 to invest, you are considering
three alternatives.
a. Invest all $10,000 in the stock, buying 100 shares.
b. Invest all $10,000 in 1,000 options (10 contracts).
c. Buy 100 options (one contract) for $1,000, and invest the
remaining $9,000 in a money market fund paying 4% in interest
over 6 months (8% per year).

5. What is your rate of return for each alternative for the following
four stock prices 6 months from now? Summarize your results
in the table and diagram below.
26. Joe Finance has just purchased a stock index fund, currently
selling at $1,200 per share. To protect against losses, Joe also
purchased an at-the-money European put option on the fund for
$60, with exercise price $1,200, and 3-month time to expiration.
Sally Calm, Joe’s financial adviser, points out that Joe is
spending a lot of money on the put. She notes that 3-month puts
with strike prices of $1,170 cost only $45, and suggests that Joe
use the cheaper put.
a. Analyze Joe’s and Sally’s strategies by drawing the profit
diagrams for the stock-plus-put positions for various values of
the stock fund in 3 months.
b. When does Sally’s strategy do better? When does it do
worse?
c. Which strategy entails greater systematic risk?
Running head: ANALYSIS AND STRATEGIES 1
ANALYSIS AND STRATEGIES 6
Pierini Babies: Environmental Analysis and Goal Setting
Strategies
Name
College

6. Author Note
This paper is being submitted on February 20, 2017, for
Mr Teacher B000 Class of Class course.
Pierini Babies: Environmental Analysis and Goal Setting
Strategies
Every business plan requires strong support from a SWOT
analysis. Pierini Babies’ childcare is such a company that is
positioned for excellence. The outlook of the corporation looks
terrific due to a supportive and stable environment. The
proponents of the external factors support the success of the
business. The strategic marketing positioning, as well as the
investment risk, is a triumph on its own. However, there are
company threats and weaknesses caused by the market
positioning of the business. Not all is promising, and the
management will be responsible for tremendous buildup work.
The responsive essay endeavors to determine the corporate’s
strengths, weaknesses, opportunities, and threats. Additionally,
the paper will explain on goal setting criteria that will ensure
the company benefits from invested resources (Hill & Gareth,
2014).
Strengths
The external environment provides the business an immense
benefit. The company will benefit greatly from the external
environment. To begin with, the company will benefit from low
startup costs. The initial expenses earned by the company will
be nominal due to the defined plan. Furthermore, investors will
be intrigued in giving their funds. Their wish to become
shareholders correlates to the organizations set goals.
Next, the clear target market will act as an enticing proponent
in the future development of the organization. Already, the
company knows what is expected of their operations. The
marketing department will receive an advantage from word of
voluntary mouth advertising. The target clients will back up the

7. program due to its inclusive proposition.
Lastly, the company will benefit from a superior and recognized
plan. The company only concentrates on quality service
delivery. The primary objective is not only high-quality services
but also low-cost support. The company has a clear market plan
that is evidently best compared to the competitors. Since the
proposal supports a parental care unit, and not only child care
center, the marketing plan is then in line with expectations of
parents. (Hill & Gareth, 2014).
Weaknesses
Every business presents challenges and weaknesses in its
operations. The management’s role in ensuring that it remains
on course with the set objective is the differential component.
Like all other companies, Pierini Babies Childcare has
weaknesses. The management is categorically working on
ensuring a plan of actions.
Firstly, the clients cannot see quality when the company has not
begun its operations. It becomes a challenge to convince
customers that the enterprise will be great. The parents want an
already existing organization that has been established on the
market. They would want to see quality or results. The
marketing department will, however, work on this aspect and
ensure the company sells the brand.
Secondly, there is no obvious advantage. The investors must be
patient and wait the company time to mature. Most of the times,
a good marketing plan does not transcend into financial benefits
immediately. The management must explain the expectations to
the stakeholders. The inability of the company to know the
expected returns is a weakness in itself (Hill & Gareth, 2014).
Opportunities
The exposed advantages to the company act as the platform for
development. Pierini Babies Childcare has a clear plan, goal
target as well as a future market plan. This position helps the
company open for perpetual growth and promises service
delivery to the clients at all times. The market opportunities
include the following:

8. Firstly, the business fits in the growing market for childcare
centers. The current state of development places the company
on the verge of success. Moreover, the population composition
and general demographic outlook have many single mothers or
working parents who need child care at some point in their
lives. Pierini comes on to fill this vacant position.
Secondly, the industry is poised to grow. According to the U.S.
Bureau of Statistics, daycare industry will grow by the year
2020. The expectations of the market do not lie. Many people
are advocating for quality, and low cost driven childcare
programs in the recent past. The fact fits the company’s
objectives comfortably (Henderson, 2012).
Lastly, there are consistent revenue growth rates. According to
Sageworks corporate, Bierman notes that the industry has had
consistent growth rates over the years. The position enables the
corporate to invest at low-risk levels (Hill & Gareth, 2014)
(Biery, 2014).
Threats
The major threat comes from market competition. Other daycare
organizations are working on better programs and at low costs.
The management team for Pierini Babies will be assigned with a
responsibility of ensuring that they compete favorably.
Secondly, the enterprise is exposed to losses. The low cost
objective is not all helpful to the company. There are many
problems attributable to the system management. These
uncertainties place the company at the risk of decline in
competitiveness.
The last threat comes in as a result of too many competitors and
ease of idea copycats. The competitors can take the advantages
of the failed model under Pierini and create a better model at
the time when the company is struggling to recuperate from
losses (Hill & Gareth, 2014).
Smart Goals
The business is positioned in a predictively sound investment
venture. However, there are some things that the management
must ensure that are right. The goals must be SMART. Here, the

9. management must be specific on the products to invest
shareholders’ funds. Secondly, the benefits must be measurable.
The stakeholders should be in a position to tell what to expect
in from the venture. Thirdly, the goals must be agreeable to the
stakeholders. Additionally, these goals must be relevant to the
company’s mission. Lastly, the goals should be time-based. The
time plan should specify on what should be achieved at each
stage of the program (Hill & Gareth, 2014).
References
Biery, M. E. (2014, June 15). Growth In U.S. Day Care
Businesses. Retrieved from Forbes:
http://www.forbes.com/sites/sageworks/2014/06/15/heres-the-
growth-chart-on-day-care-businesses/#7db7719c6405
Henderson, R. (2012, January). Industry Employment and
Output Projections to 2020. Retrieved from U.S. Bureau of
Labor Statistics: www.bls.gov/opub/mlr/2012/01/art4full.pdf
Hill, W., & Gareth R. 2014. Strategic Management Theory: An
Integrated Approach. Boston, MA:
Houghton Mifflin.

10. Pierini Babies
1
Company Description
Pierini Babies will offer high-quality care to every child that
walks in through our doors. We will be a family owned and
operated business. Our curriculum and staff will offer families
everything they need and fun while learning. Children will be in
a safe environment where they will be, nurtured, loved, and
encouraged to learn.
Pierini Babies philosophy is to provide children an environment
that will develop each child’s self-esteem, provide a positive
atmosphere for learning and play with others, encourage interest
in creative activities and inspire children to develop a love of
learning. Our program will be created to be friendly and
accommodating, thus giving each child many opportunities to
express themselves and to explore the world through small
group and tailored activities.
2
Why Pierini Babies is different?
At Pierini Babies we believe every family should have the
chance to be offered high-quality, affordable child care
services. We do not believe in “you get what you pay for.” We
believe in superior childcare services without breaking the bank
for families. We understand child care services are very
expensive, and unfortunately not all households can afford it.
That is why Pierini Babies has made their rates affordable

11. versus the rates in the 20-mile area. We want children in good
hands.
Pierini Babies offers programs for children ranging in age,
starting from 8 weeks to 13 years old.
Infants
Toddlers
Pre-Schoolers
Kindergarten
After-School Programs
3
Management function needed to be successful
The most important function of management for Pierini Babies
to be successful is Control. Control includes establishing
performance standards, which are aligned to the company's
objectives. It also encompasses evaluation and reporting of
actual work performance. The controlling function aims to
examine if the tasks assigned are completed on time and
according to the principles set by the department. The
controlling function happens after the planning process has been
executed and the tasks allotted. Its goal is to see if the results
are in agreement with the objectives proposed in the initial plan.
The controlling processes, in comparison with the other four, is
a continuous process. All levels of management take a role in
this function. The controlling process is also a huge in itself. In
the control function management can predict future problems,
implement necessary preventive measures, and make policy
changes in time. Efficient and productive management leads to
success, which is the achievement of objectives and goals that
an organization sets for itself.
Why Investors should be interested?

12. There is a growing need for quality child care. Working parents,
including single-parent families and families with both parents
working, is increasing. This need is creating a remarkable
business opportunity. Pierini Babies has decided to take
advantage of this opportunity.
The U.S. Bureau of Labor Statistics foresees that daycare
companies will be part of the most rapid employment growth of
all industries through 2020. Furthermore, new data from
Sageworks suggests, in the U.S. child day care businesses have
consistently grown in sales in recent years, even as many other
companies struggled in the economic recession and subsequent
recovery. Sageworks analyst Libby Bierman has even stated the
industry has a healthy net profit margin and fairly consistent
sales growth.
Why Investors should be interested cont.?
Pierini Babies will thrive by offering its customers children a
safe and protected child care environment and devoted
individual attention. The goals of the facility are two-sided; to
assure parents feel comfortable about the care their children are
receiving and to make it a safe, learning, and enjoyable
experience for the children.
Pierini Babies will earn a significant profit through the
exceptional care of children. Despite the fact Pierini Babies
charges less, the business will see revenue within the first year
due to favorable word-of-mouth marketing. The company
anticipates its' customers will double every quarter, for the first
24 months
References
https://www.bls.gov/opub/mlr/2012/01/art4full.pdf
http://www.forbes.com/sites/sageworks/2014/06/15/heres-the-
growth-chart-on-day-care-businesses/#774db5f06405
https://www.sageworks.com/datareleases.aspx?article=233&title

13. =growth-in-u.s.-day-care-businesses&date=june-19-2014
Business Name:
SMART Goal:
Criterion being Measured:
Time Frame For Goal Completion:
Explain the system that you will create to track the success of
this goal?
Why is being reliable and completing this goal on time
important to the business’ success?
What adjustments will you make if you fall behind completing
this goal?
Business Name:
SMART Goal:

14. Criterion being Measured:
Time Frame For Goal Completion:
Explain the system that you will create to track the success of
this goal?
Why is being reliable and completing this goal on time
important to the business’ success?
What adjustments will you make if you fall behind completing
this goal?