CPOs today are aggressively & proactively working towards defining the performance criteria that will be used to measure procurements contribution to business objectives. Savings being one of the key performance attributes linked to procurement, in this session Matthew Weinberg, Senior Manager from Cubist Pharmaceuticals will be sharing his insights into the approach adopted by Cubist to track and report on the savings generated through different sourcing initiatives.
Appendix 7-ABest Buy Co., Inc.Pro Forma Financial StatementsDiscou.docxjustine1simpson78276
Appendix 7-ABest Buy Co., Inc.Pro Forma Financial StatementsDiscounted Cash Flow Analysis120152016201720182016201720182Sales Revenue42,355,95044,473,74846,697,4353Sales Forecastless: Cost of Goods Sold30,692,00030,092,00029,492,0004My strategyWithout my strategyGROSS PROFIT11,663,95014,381,74817,205,4355Income Statement6Sales Revenue40,339,00042,355,95044,473,74846,697,43541,549,17042,795,64544,079,514General and Administrative Expenses7,492,0007,392,0007,292,0007less: Cost of Goods Sold31,292,00030,692,00030,092,00029,492,00031,492,00031,692,00031,892,0008GROSS PROFIT9,047,00011,663,95014,381,74817,205,43510,057,17011,103,64512,187,514EBITDA4,166,9506,984,7489,908,4359less: Selling Expenses10General and Administrative Expenses7,592,0007,492,0007,392,0007,292,0007,705,8807,821,4687,938,790Less: D&A556,000556,000556,00011Depreciation Expense12Other Operating Expenses5,0005,0005,0005,0005,0005,0005,000EBIT3,610,9506,428,7489,352,43513Total Operating Expenses7,597,0007,497,0007,397,0007,297,0007,710,8807,826,4687,943,790Less: Taxes433,314771,4501,122,29214OPERATING PROFIT1,450,0004,166,9506,984,7489,908,4352,346,2903,277,1774,243,724EBIAT3,177,6365,657,2988,230,14315less: Interest and Other Expenses90,00091,80093,63695,50990,00090,00090,00016plus: Interest and Other Revenues27,00027,00027,00027,00027,27027,54327,818Plus: D&A556,000556,000556,00017PRE-TAX INCOME1,387,0004,102,1506,918,1129,839,9262,283,5603,214,7204,181,542Less:Capital Exp.176,350185,168194,42618Income Tax141,000492,258830,1731,180,791342,534482,208627,231Less: Inc. in WC4,179,3504,417,3004,666,36319NET INCOME1,246,0003,609,8926,087,9388,659,1351,941,0262,732,5123,554,311Unlevered Free Cash Flow(622,064)1,610,8313,925,3542021Cash Flow Statement22Net Income3,609,8926,087,9388,659,1351,941,0262,732,5123,554,31123Depreciation Expense656,000556,000556,000556,000675,680695,950716,82924Net Income plus Depreciation Expense4,165,8926,643,9389,215,1352,616,7063,428,4624,271,14025plus: Increase in Accounts Payable26Increase in Other Payables(19,000)(19,000)(19,000)(19,000)(19,000)(19,000)27less: Increases in Accounts Receivable28Increase in Inventory29OPERATING CASH FLOW4,146,8926,624,9389,196,1352,597,7063,409,4624,252,14030plus: Net Cash from Financing Activities31less: Net Investment Outlays(223,000)(111,500)(55,750)(27,875)(229,690)(236,581)(243,678)32NET CASH FLOW4,258,3926,680,6889,224,0102,827,3963,646,0434,495,81833plus: Beginning Cash2,432,0003,648,0005,472,0002,432,0002,432,0002,432,00034ENDING CASH BALANCE6,690,39210,328,68814,696,0105,259,3966,078,0436,927,8183536Balance Sheet37ASSETS38Cash and Equivalents2,432,0002,553,6002,681,2802,815,3442,504,9602,580,1092,657,51239Accounts Receivable1,280,0001,305,6001,331,7121,358,3461,318,4001,357,9521,398,69140Short-Term Investments1,456,0001,528,8001,605,2401,685,5021,499,6801,544,6701,591,01141Other Current Assets1,387,0001,456,3501,529,1681,605,6261,428,6101,471,4681,515,61242Inventory5,174,0005,432,7005,704,3355,989,5525,329,2205,48.
CPOs today are aggressively & proactively working towards defining the performance criteria that will be used to measure procurements contribution to business objectives. Savings being one of the key performance attributes linked to procurement, in this session Matthew Weinberg, Senior Manager from Cubist Pharmaceuticals will be sharing his insights into the approach adopted by Cubist to track and report on the savings generated through different sourcing initiatives.
Appendix 7-ABest Buy Co., Inc.Pro Forma Financial StatementsDiscou.docxjustine1simpson78276
Appendix 7-ABest Buy Co., Inc.Pro Forma Financial StatementsDiscounted Cash Flow Analysis120152016201720182016201720182Sales Revenue42,355,95044,473,74846,697,4353Sales Forecastless: Cost of Goods Sold30,692,00030,092,00029,492,0004My strategyWithout my strategyGROSS PROFIT11,663,95014,381,74817,205,4355Income Statement6Sales Revenue40,339,00042,355,95044,473,74846,697,43541,549,17042,795,64544,079,514General and Administrative Expenses7,492,0007,392,0007,292,0007less: Cost of Goods Sold31,292,00030,692,00030,092,00029,492,00031,492,00031,692,00031,892,0008GROSS PROFIT9,047,00011,663,95014,381,74817,205,43510,057,17011,103,64512,187,514EBITDA4,166,9506,984,7489,908,4359less: Selling Expenses10General and Administrative Expenses7,592,0007,492,0007,392,0007,292,0007,705,8807,821,4687,938,790Less: D&A556,000556,000556,00011Depreciation Expense12Other Operating Expenses5,0005,0005,0005,0005,0005,0005,000EBIT3,610,9506,428,7489,352,43513Total Operating Expenses7,597,0007,497,0007,397,0007,297,0007,710,8807,826,4687,943,790Less: Taxes433,314771,4501,122,29214OPERATING PROFIT1,450,0004,166,9506,984,7489,908,4352,346,2903,277,1774,243,724EBIAT3,177,6365,657,2988,230,14315less: Interest and Other Expenses90,00091,80093,63695,50990,00090,00090,00016plus: Interest and Other Revenues27,00027,00027,00027,00027,27027,54327,818Plus: D&A556,000556,000556,00017PRE-TAX INCOME1,387,0004,102,1506,918,1129,839,9262,283,5603,214,7204,181,542Less:Capital Exp.176,350185,168194,42618Income Tax141,000492,258830,1731,180,791342,534482,208627,231Less: Inc. in WC4,179,3504,417,3004,666,36319NET INCOME1,246,0003,609,8926,087,9388,659,1351,941,0262,732,5123,554,311Unlevered Free Cash Flow(622,064)1,610,8313,925,3542021Cash Flow Statement22Net Income3,609,8926,087,9388,659,1351,941,0262,732,5123,554,31123Depreciation Expense656,000556,000556,000556,000675,680695,950716,82924Net Income plus Depreciation Expense4,165,8926,643,9389,215,1352,616,7063,428,4624,271,14025plus: Increase in Accounts Payable26Increase in Other Payables(19,000)(19,000)(19,000)(19,000)(19,000)(19,000)27less: Increases in Accounts Receivable28Increase in Inventory29OPERATING CASH FLOW4,146,8926,624,9389,196,1352,597,7063,409,4624,252,14030plus: Net Cash from Financing Activities31less: Net Investment Outlays(223,000)(111,500)(55,750)(27,875)(229,690)(236,581)(243,678)32NET CASH FLOW4,258,3926,680,6889,224,0102,827,3963,646,0434,495,81833plus: Beginning Cash2,432,0003,648,0005,472,0002,432,0002,432,0002,432,00034ENDING CASH BALANCE6,690,39210,328,68814,696,0105,259,3966,078,0436,927,8183536Balance Sheet37ASSETS38Cash and Equivalents2,432,0002,553,6002,681,2802,815,3442,504,9602,580,1092,657,51239Accounts Receivable1,280,0001,305,6001,331,7121,358,3461,318,4001,357,9521,398,69140Short-Term Investments1,456,0001,528,8001,605,2401,685,5021,499,6801,544,6701,591,01141Other Current Assets1,387,0001,456,3501,529,1681,605,6261,428,6101,471,4681,515,61242Inventory5,174,0005,432,7005,704,3355,989,5525,329,2205,48.
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic M&A Valuation.
From defensive to offensive growth during the pandemic generated by COVID-19Constantin Magdalina
It is now the time to prepare for the next phase. Industries that have been in the status quo for a decade are now wide open to transformation. Companies that move quickly and decisively will win.
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic M&A Valuation.
From defensive to offensive growth during the pandemic generated by COVID-19Constantin Magdalina
It is now the time to prepare for the next phase. Industries that have been in the status quo for a decade are now wide open to transformation. Companies that move quickly and decisively will win.
Oprah Winfrey: A Leader in Media, Philanthropy, and Empowerment | CIO Women M...CIOWomenMagazine
This person is none other than Oprah Winfrey, a highly influential figure whose impact extends beyond television. This article will delve into the remarkable life and lasting legacy of Oprah. Her story serves as a reminder of the importance of perseverance, compassion, and firm determination.
The Team Member and Guest Experience - Lead and Take Care of your restaurant team. They are the people closest to and delivering Hospitality to your paying Guests!
Make the call, and we can assist you.
408-784-7371
Foodservice Consulting + Design
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Artificial intelligence (AI) offers new opportunities to radically reinvent the way we do business. This study explores how CEOs and top decision makers around the world are responding to the transformative potential of AI.
1. MB 301 ENTREPRENEURSHIP &
PROJECT MANAGEMENT
LECTURE 15 & 16
Harvesting Strategies , Sustaining Competitiveness, Maintaining Competitive Advantage,
Changing Role of the Entrepreneur
PROF. KRISHNA ROY
2. HARVESTING STRATEGIES IN ENTREPRENEURSHIP
PROF. KRISHNA ROY, FMS, BCREC 2
When the revenue made by additional investment would not overcome
the expense, all marketing investment in a particular business line is
reduced or eliminated, as sales revenue falls below a cutoff point.
Thus harvesting strategy is a business plan for either canceling or
reducing marketing spending on a product.
A harvesting strategy is chosen when a product reaches the end of its
life cycle.
At this point, the product sells only due to goodwill.
Companies use a harvesting strategy when a product has reached
the cash cow stage i.e. it makes profit in a mature market and does not
need heavy reinvestment.
02-09-2023
3. HARVESTING STRATEGIES IN ENTREPRENEURSHIP
PROF. KRISHNA ROY, FMS, BCREC 3
Investment is diversified to other new products resulting in better return
on investment.
Implementation of the harvesting strategy demands:
•Elimination or reduction of all capital spending on the product i.e. use of existing
equipment until it no longer works.
•Reduction or elimination of marketing and advertising expenditure. New sales
rely on brand loyalty.
•Elimination or reduction of operating expenses. Expenditure is approved only
when the return on investment is very high.
An entrepreneur decides to implement a harvest strategy for a product
when a clear trend emerges that the product’s sales growth rate is
slowing down.
02-09-2023
4. why HARVESTING STRATEGIES
PROF. KRISHNA ROY, FMS, BCREC 4
When the entrepreneur has inventory for a
product and yet he is planning to discontinue
with the product(May reduce price).
When the entrepreneur wants to invest time
and money in developing other new products.
When the product has reached the cash cow
stage and gives returns without too much
investment (production without marketing
investment will still sell).
02-09-2023
5. HARVESTING STRATEGIES
PROF. KRISHNA ROY, FMS, BCREC 5
ADVANTAGE :A harvest strategy earns income
with minimal investment. This maximizes profit
and also frees up resources for other
endeavours.
DISADVANTAGE : A harvest strategy fails if not
applied at the right time in the product life cycle.
Switching to the harvest strategy with a product
with life still left, the entrepreneur loses profits
due to reduced marketing efforts.
02-09-2023
6. Competitive Advantage
PROF. KRISHNA ROY, FMS, BCREC 6
Competitive advantage refers to the factors or
attributes that allow a given company to produce
more affordable or higher quality services or
products than its competitors.
A competitive advantage is what makes an
entity's goods or services superior to all of a
customer's other choices.
To be successful, an entrepreneur needs to be
able to articulate the benefit she provides to
her target market that's better than
the competition. That’s her competitive
advantage.
02-09-2023
7. Sustaining Competitiveness and Maintaining Competitive Advantage-Michael Porter
PROF. KRISHNA ROY, FMS, BCREC 7
A company must create clear goals, strategies, and operations
to build sustainable competitive advantage.
The three primary ways companies achieve a sustainable
advantage: cost leadership, differentiation, and focus.
Cost leadership means providing reasonable value at a lower
price. Firms do this by continuously improving operational
efficiency.
Differentiation means delivering better benefits than anyone
else. A firm can achieve differentiation by providing a unique or
high-quality product or by delivering it faster.
Focus means understanding and servicing the target market
better than anyone else by using cost leadership or
differentiation to do that(example niche segment focus).
02-09-2023
8. Changing Role of the Entrepreneur.
PROF. KRISHNA ROY, FMS, BCREC 8
• Entrepreneurship is not static. New ventures grow into established companies with the role of
entrepreneur changing constantly.
• Entrepreneurs must transition from their roles of micromanagers to strategic managers.
• Stage I: Existencemain problems of the business are obtaining customers and delivering the
product or service. The owner does everything and directly supervises subordinates.
• Stage II: SurvivalThe key problem shifts from mere existence to the relationship between
revenues and expenses. Number of employees go up but competence is average. Very little
formal planning exists and owner is still the sole decision maker.
• Stage IV: Take-offThe key problems are how to grow rapidly and how to finance that
growth. Organization is decentralized and key managers must be competent. The owner starts
delegating responsibility and oversees and guides.
• Stage V: Resource MaturityKey issues and focus in this stage are financial gains and flexibility
of response. A company in Stage V has the staff and financial resources to engage in detailed
operational and strategic planning. The owner and the business are quite separate, both
financially and operationally.
02-09-2023
9. • Till we meet again in the next class……….
PROF. KRISHNA ROY, FMS, BCREC 9
02-09-2023