Final ppt of Nestlé-Alcon Groupwork, Corporate Finance course, DDIM 2011, Shanghai.
In this assignment we played the role of an investment bank. Our role was to persuade Nestlé's management to list Alcon.
The document discusses carving out Alcon from Nestle to increase company value. It finds that carving out Alcon and valuing it separately from Nestle's food business, using industry multiples, increases Nestle's total enterprise value by approximately 7% to over $104 million compared to its current $97500 million value. The best option for listing Alcon is the US market, which would provide high liquidity, regulation, and attract more pharmaceutical investors, despite some costs of restructuring. Carving out and listing Alcon in the US is recommended to realize increased value.
L'Oreal Of Paris: Bringing "Class To Mass" With Plénitude Apoorv Malu
This document summarizes L'Oreal's Plénitude skin care brand strategy in the United States. Some key points:
1. L'Oreal launched Plénitude in the US nationwide with 14 SKUs across basic moisturizers, treatment moisturizers, and cleansers.
2. Plénitude initially saw strong sales but then hit a 4-year sales plateau, losing the #2 spot to Pond's by the 9th year.
3. L'Oreal identified needs to improve sales, profits, and Plénitude's contribution globally by rethinking their US strategy, product lineup, and pricing. This included market research to ensure their products fit US customer needs.
The document provides a strategic plan for expanding the global operations of Grolsch, a subsidiary of SAB Miller. It analyzes Grolsch's current situation, issues, and options. It recommends entering new markets in South Africa, Brazil, and China using different entry strategies tailored for each market. For South Africa, it proposes utilizing SAB Miller's existing facilities and distribution channels. For Brazil, it recommends licensing production to a local company and providing promotional support. For China, it suggests leveraging SAB Miller's joint venture with a local brewer for distribution and promoting in high-quality locations. Financial projections through 2017 show increasing sales volumes and profits in each market, with the overall plan achieving a positive cumulative cash flow and
A group case study project as part of the Marketing Management Post-Graduate course work exploring the acquisition of Snapple by Quaker and then Triarc.
Strategic analysis of unilever (USLP 2012-2013)Roukaya Issaoui
This paper provide a brief analysis of the competitive environment of Unilever then a strategic analysis of Unilever and it’s position in each industry.
This document provides information about Philips and Matsushita (later Panasonic). It discusses how Philips became a leading consumer electronics company through building national organizations around the world and focusing on innovation. However, it struggled with high costs as it outsourced more manufacturing. Matsushita surpassed Philips by producing low-cost, high-quality standardized products and being a fast follower. Both companies struggled with changing their cultures and structures as international companies.
This report provides a strategic analysis and recommendations for Jot, a toy company. It analyzes Jot's strengths, weaknesses, and financial performance. Key recommendations include shifting production to Voldania to reduce costs, launching a new line for the 9-11 age group to tap an untapped market, and prioritizing major customers over small retailers for late Christmas deliveries to preserve important relationships. The report also suggests improving quality control after a faulty toy was found.
Loreal in China: Strategies for the Yue Sai BrandAnkit Sen
L'Oreal acquired the Chinese skincare brand Yue Sai but has faced challenges in effectively positioning and marketing the brand. Some key issues include an uncertain business model, reduced brand visibility, and lack of motivation among L'Oreal employees in China. To address these, the document recommends that L'Oreal associate its name more closely with Yue Sai to increase brand awareness and customer acceptance. It also suggests strengthening promotions utilizing Chinese social media and traditional Chinese medicine values, while exploring new product categories and markets.
The document discusses carving out Alcon from Nestle to increase company value. It finds that carving out Alcon and valuing it separately from Nestle's food business, using industry multiples, increases Nestle's total enterprise value by approximately 7% to over $104 million compared to its current $97500 million value. The best option for listing Alcon is the US market, which would provide high liquidity, regulation, and attract more pharmaceutical investors, despite some costs of restructuring. Carving out and listing Alcon in the US is recommended to realize increased value.
L'Oreal Of Paris: Bringing "Class To Mass" With Plénitude Apoorv Malu
This document summarizes L'Oreal's Plénitude skin care brand strategy in the United States. Some key points:
1. L'Oreal launched Plénitude in the US nationwide with 14 SKUs across basic moisturizers, treatment moisturizers, and cleansers.
2. Plénitude initially saw strong sales but then hit a 4-year sales plateau, losing the #2 spot to Pond's by the 9th year.
3. L'Oreal identified needs to improve sales, profits, and Plénitude's contribution globally by rethinking their US strategy, product lineup, and pricing. This included market research to ensure their products fit US customer needs.
The document provides a strategic plan for expanding the global operations of Grolsch, a subsidiary of SAB Miller. It analyzes Grolsch's current situation, issues, and options. It recommends entering new markets in South Africa, Brazil, and China using different entry strategies tailored for each market. For South Africa, it proposes utilizing SAB Miller's existing facilities and distribution channels. For Brazil, it recommends licensing production to a local company and providing promotional support. For China, it suggests leveraging SAB Miller's joint venture with a local brewer for distribution and promoting in high-quality locations. Financial projections through 2017 show increasing sales volumes and profits in each market, with the overall plan achieving a positive cumulative cash flow and
A group case study project as part of the Marketing Management Post-Graduate course work exploring the acquisition of Snapple by Quaker and then Triarc.
Strategic analysis of unilever (USLP 2012-2013)Roukaya Issaoui
This paper provide a brief analysis of the competitive environment of Unilever then a strategic analysis of Unilever and it’s position in each industry.
This document provides information about Philips and Matsushita (later Panasonic). It discusses how Philips became a leading consumer electronics company through building national organizations around the world and focusing on innovation. However, it struggled with high costs as it outsourced more manufacturing. Matsushita surpassed Philips by producing low-cost, high-quality standardized products and being a fast follower. Both companies struggled with changing their cultures and structures as international companies.
This report provides a strategic analysis and recommendations for Jot, a toy company. It analyzes Jot's strengths, weaknesses, and financial performance. Key recommendations include shifting production to Voldania to reduce costs, launching a new line for the 9-11 age group to tap an untapped market, and prioritizing major customers over small retailers for late Christmas deliveries to preserve important relationships. The report also suggests improving quality control after a faulty toy was found.
Loreal in China: Strategies for the Yue Sai BrandAnkit Sen
L'Oreal acquired the Chinese skincare brand Yue Sai but has faced challenges in effectively positioning and marketing the brand. Some key issues include an uncertain business model, reduced brand visibility, and lack of motivation among L'Oreal employees in China. To address these, the document recommends that L'Oreal associate its name more closely with Yue Sai to increase brand awareness and customer acceptance. It also suggests strengthening promotions utilizing Chinese social media and traditional Chinese medicine values, while exploring new product categories and markets.
This document provides an analysis of the beer industry and a case study of Adolph Coors and the Coors brewing company. It begins with an introduction and overview of the brewing market evolution since World War II and the history of Coors. It then analyzes the political, economic, social and technological environment. Following this, it discusses market segmentation, targeting and positioning for Coors. It also analyzes Porter's Five Forces and provides a SWOT analysis for both Coors and Anheuser-Busch. The document concludes with a recommended strategy section.
The document summarizes Procter & Gamble's organizational changes over time. It focuses on the "Organization 2005" restructuring program introduced by CEO Durk Jager which aimed to accelerate sales and innovation by structuring P&G into three global organizations based around products, geographies, and business processes. However, the changes led to missed earnings targets, loss of market share, and reduced employee morale as jobs were cut. While the goals were to promote innovation and speed, a lack of immediate results and confrontational leadership style created problems. Recommendations include building employee buy-in through communication, shaping culture to fit the strategic needs, and giving local management flexibility while maintaining global standards.
- Edgar Newell started Newell Company in 1902 through the acquisition of a curtain rod manufacturer.
- Dan Ferguson crafted a growth strategy of acquiring companies to expand Newell's product line.
- In the late 1990s, Newell faced challenges from increased customer buying power and consolidation in the retail industry.
- Newell acquired Calphalon and Rubbermaid but integrating the large Rubbermaid presented challenges due to its size, reputation, and operations that could impact Newell's strategy.
Havells India : The Sylvania Acquisition DecisionShivamSingh1379
Havells acquired Sylvania to expand its global market reach. Sylvania's distribution network in over 50 countries provided an opportunity for Havells to enter new markets in Europe and Latin America. Sylvania also needed a cash infusion due to financial losses. However, integrating different work cultures and complying with varying government standards across markets posed challenges. Increased Asian competition and an economic slowdown further complicated the acquisition. Ultimately, Havells' industry reputation and experience with prior acquisitions helped it successfully acquire and manage Sylvania despite risks in the external environment.
This document contains accounting information for Chemalite for 1991, including balance sheets, income statements, and statements of cash flows for the periods ended June 30, 1991 and December 31, 1991. It records various business transactions that affected Chemalite's assets, liabilities, equity, revenues and expenses. The ending balances on the December 31 statements show cash of $113,000, total assets of $546,875, total equity of $546,875, net income of $46,875 and ending cash balance of $113,000.
1. Peter Hynes created an improved commercial paint spray and formed a corporation called Dispensers of California, Inc. with some friends to gain a patent for the spray.
2. The document includes transaction worksheets, trial balances, income statements, statements of cash flow, and ending balance sheets to analyze the financial performance and position of the new business.
3. It asks if you would invest in the company based on considerations like the profit plan, financial statements, return on equity, return on sales, and current ratio.
The document discusses P&G's SK-II skin care brand, which originated in Japan in 1980 and is considered a luxury ritual product. It provides an overview of SK-II's globalization strategy and opportunities for expanding the brand into new markets like China and within Japan. Key discussions include analyzing cultural differences that could impact expansion, educating consumers, and strategies around brand identity, customer loyalty, and pricing to maximize potential in these new markets.
1. Intel established itself as the early leader and standard-setter in microprocessors through innovations like the 4004 and 8086 chips. It was able to leverage this first-mover advantage over competitors.
2. Intel aggressively defended its proprietary x86 architecture through licensing restrictions and marketing campaigns against rivals like AMD. This helped it maintain control over the industry standard.
3. Intel invested heavily in cutting-edge manufacturing capabilities to continually advance process technology in line with Moore's Law. This allowed it to integrate more transistors at a lower cost over time, keeping its microprocessors ahead of competitors.
L'Oreal faces several strategic global marketing challenges. These include greater competition in emerging markets like China, India, and Brazil, which are expected to account for three-fourths of the company's growth. L'Oreal must also adapt to changing cultural tastes and economic conditions in markets like the US and Europe where growth has slowed. Additionally, the company aims to double its consumer base to 2 billion by 2020, requiring innovation and strong branding on a global scale while still meeting local needs and tastes in different regions.
Jabong: Balancing the Demads of Customers and SuppliersSaiteja Pamu
This document discusses Jabong, an Indian e-commerce fashion retailer, and its relationship with supplier Puma. It summarizes Jabong's history, business model, growth strategies, and customer base. In 2014, Puma introduced new brand guidelines restricting discounts on core products. This impacted Jabong's sales and customer acquisition. The document analyzes options like continuing with core products, requesting exclusive product ranges, or moving Puma to a marketplace model to balance customer and supplier demands.
- L'Oreal introduced their Plenitude skincare line in 1982 in France targeting modern women. It aimed to provide technologically advanced, high-end products at an accessible price point.
- When introduced in the US, Plenitude launched with 14 SKUs across 3 categories to recreate a department store experience in mass retail channels. However, after 9 years sales plateaued despite not being profitable.
- Acceptor/rejector studies in the US found that the L'Oreal brand attracted trial but Plenitude was unknown. Younger consumers found the formulas too heavy. The large product line was seen as overwhelming versus traditional brands like Oil of Olay.
This is the case study of the subject Managerial Accounting. It deals with the Break Even point. The analysis is basically on the break -even analysis for the multiple products. We have done the full analysis and the solution is in the presentation.
This case study analyzes the compensation plan of Asahi India Glass. [1] Previously, compensation was straight commission based on performance, which led to job insecurity. [2] The new plan includes a 70% basic salary plus 30% point-based commission structure. [3] This provides greater job security while still incentivizing performance through incremental commissions. The new plan addresses issues with the previous straight commission plan.
1. Apple experienced significant growth between 2010 and 2012 across key product categories and geographies.
2. iPhone sales skyrocketed with the launch on new carriers like Verizon, though Android led the smartphone market. iPad maintained its leadership in tablets.
3. The company more than tripled its revenue and quadrupled its net income and cash holdings over this period through innovations, retail expansion, and new product introductions.
4. While Steve Jobs stepped down as CEO in 2011 due to health issues, Apple became the largest company by revenue and profit under new leadership.
Yushan Bicycles, a Taiwanese bicycle manufacturer, established subsidiaries in Asia, Europe, and Australia as part of its international expansion plan. Yushan Australia (YA) was experiencing quarterly losses due to issues with hiring staff, warehouse space, and delayed deliveries compared to other subsidiaries. The document identifies problems with YA's sales and supply chain strategies and lack of trust between YA and headquarters. It provides recommendations for YA to target new customer segments in Australia, improve communication between subsidiaries, and give Hamilton more time to implement his strategies to prove effectiveness.
Crocs is a footwear company known for its colorful, lightweight and breathable clogs made of Croslite material. It grew rapidly due to its innovative and highly flexible supply chain model that allowed retailers to place smaller pre-orders and reorder within seasons. Crocs core competencies include its supply chain flexibility and responsiveness, ownership of Croslite material production, and experienced management. It can further exploit these competencies through vertical integration, strategic acquisitions of other footwear brands, and expanding its product lines. Potential alternatives for growth include further vertical integration, acquisitions, and product line extensions.
The soft drink concentrate business is highly profitable due to low costs of production and barriers to entry. Concentrate producers require only $25-50 million for a plant that can serve the entire US market. They face little threat from new entrants due to patented formulas and brand equity built over decades of marketing. In contrast, bottlers face higher costs, more competition, and lower profits of around 35% due to factors like needing large capital investments for plants. However, Coke and Pepsi have been able to sustain profits through brand loyalty, expanding into new markets like juices, and leveraging their brand equity globally despite slowing carbonated drink demand.
This document analyzes Yell, a UK-based directory services company with both UK and US businesses, as a potential leveraged buyout opportunity. It provides financial projections and assumptions for the UK and US businesses, including adjusted growth rates and margins. It also details the company's debt structure, cash flows, and currency exchange rates that would need to be considered in an LBO. Key questions addressed are whether Yell is a good LBO candidate and why BT wants to sell the business.
Crafting winning strategies in a mature market - US wine marketSaurabh Arora
The US wine industry in 2001 was characterized by a mature market with a few large players dominating the low price segment. The top 8 firms produced over 75% of the volume while approximately 2,500 other firms split the remaining 25%. It was difficult for new companies to enter the industry due to high startup costs, oversupply of grapes, and consolidation among retailers and distributors. A company considering entry would need to target the 90% of the population that did not regularly drink wine or create a new market segment. The best strategy would be a blue ocean approach to expand the market rather than compete in the already crowded premium and budget segments. Established players should also look to tap new demand and acquire distribution to grow. The industry
Nestle is a large food and beverage company founded in 1866 that has traditionally used a hierarchical organizational structure. This structure was facing problems with encouraging contributions from employees. Nestle addressed this by appointing a new CEO and transforming to a more flexible structure to encourage collaboration across borders. They aimed to develop employees' leadership skills and embrace diversity.
This document provides an analysis of the beer industry and a case study of Adolph Coors and the Coors brewing company. It begins with an introduction and overview of the brewing market evolution since World War II and the history of Coors. It then analyzes the political, economic, social and technological environment. Following this, it discusses market segmentation, targeting and positioning for Coors. It also analyzes Porter's Five Forces and provides a SWOT analysis for both Coors and Anheuser-Busch. The document concludes with a recommended strategy section.
The document summarizes Procter & Gamble's organizational changes over time. It focuses on the "Organization 2005" restructuring program introduced by CEO Durk Jager which aimed to accelerate sales and innovation by structuring P&G into three global organizations based around products, geographies, and business processes. However, the changes led to missed earnings targets, loss of market share, and reduced employee morale as jobs were cut. While the goals were to promote innovation and speed, a lack of immediate results and confrontational leadership style created problems. Recommendations include building employee buy-in through communication, shaping culture to fit the strategic needs, and giving local management flexibility while maintaining global standards.
- Edgar Newell started Newell Company in 1902 through the acquisition of a curtain rod manufacturer.
- Dan Ferguson crafted a growth strategy of acquiring companies to expand Newell's product line.
- In the late 1990s, Newell faced challenges from increased customer buying power and consolidation in the retail industry.
- Newell acquired Calphalon and Rubbermaid but integrating the large Rubbermaid presented challenges due to its size, reputation, and operations that could impact Newell's strategy.
Havells India : The Sylvania Acquisition DecisionShivamSingh1379
Havells acquired Sylvania to expand its global market reach. Sylvania's distribution network in over 50 countries provided an opportunity for Havells to enter new markets in Europe and Latin America. Sylvania also needed a cash infusion due to financial losses. However, integrating different work cultures and complying with varying government standards across markets posed challenges. Increased Asian competition and an economic slowdown further complicated the acquisition. Ultimately, Havells' industry reputation and experience with prior acquisitions helped it successfully acquire and manage Sylvania despite risks in the external environment.
This document contains accounting information for Chemalite for 1991, including balance sheets, income statements, and statements of cash flows for the periods ended June 30, 1991 and December 31, 1991. It records various business transactions that affected Chemalite's assets, liabilities, equity, revenues and expenses. The ending balances on the December 31 statements show cash of $113,000, total assets of $546,875, total equity of $546,875, net income of $46,875 and ending cash balance of $113,000.
1. Peter Hynes created an improved commercial paint spray and formed a corporation called Dispensers of California, Inc. with some friends to gain a patent for the spray.
2. The document includes transaction worksheets, trial balances, income statements, statements of cash flow, and ending balance sheets to analyze the financial performance and position of the new business.
3. It asks if you would invest in the company based on considerations like the profit plan, financial statements, return on equity, return on sales, and current ratio.
The document discusses P&G's SK-II skin care brand, which originated in Japan in 1980 and is considered a luxury ritual product. It provides an overview of SK-II's globalization strategy and opportunities for expanding the brand into new markets like China and within Japan. Key discussions include analyzing cultural differences that could impact expansion, educating consumers, and strategies around brand identity, customer loyalty, and pricing to maximize potential in these new markets.
1. Intel established itself as the early leader and standard-setter in microprocessors through innovations like the 4004 and 8086 chips. It was able to leverage this first-mover advantage over competitors.
2. Intel aggressively defended its proprietary x86 architecture through licensing restrictions and marketing campaigns against rivals like AMD. This helped it maintain control over the industry standard.
3. Intel invested heavily in cutting-edge manufacturing capabilities to continually advance process technology in line with Moore's Law. This allowed it to integrate more transistors at a lower cost over time, keeping its microprocessors ahead of competitors.
L'Oreal faces several strategic global marketing challenges. These include greater competition in emerging markets like China, India, and Brazil, which are expected to account for three-fourths of the company's growth. L'Oreal must also adapt to changing cultural tastes and economic conditions in markets like the US and Europe where growth has slowed. Additionally, the company aims to double its consumer base to 2 billion by 2020, requiring innovation and strong branding on a global scale while still meeting local needs and tastes in different regions.
Jabong: Balancing the Demads of Customers and SuppliersSaiteja Pamu
This document discusses Jabong, an Indian e-commerce fashion retailer, and its relationship with supplier Puma. It summarizes Jabong's history, business model, growth strategies, and customer base. In 2014, Puma introduced new brand guidelines restricting discounts on core products. This impacted Jabong's sales and customer acquisition. The document analyzes options like continuing with core products, requesting exclusive product ranges, or moving Puma to a marketplace model to balance customer and supplier demands.
- L'Oreal introduced their Plenitude skincare line in 1982 in France targeting modern women. It aimed to provide technologically advanced, high-end products at an accessible price point.
- When introduced in the US, Plenitude launched with 14 SKUs across 3 categories to recreate a department store experience in mass retail channels. However, after 9 years sales plateaued despite not being profitable.
- Acceptor/rejector studies in the US found that the L'Oreal brand attracted trial but Plenitude was unknown. Younger consumers found the formulas too heavy. The large product line was seen as overwhelming versus traditional brands like Oil of Olay.
This is the case study of the subject Managerial Accounting. It deals with the Break Even point. The analysis is basically on the break -even analysis for the multiple products. We have done the full analysis and the solution is in the presentation.
This case study analyzes the compensation plan of Asahi India Glass. [1] Previously, compensation was straight commission based on performance, which led to job insecurity. [2] The new plan includes a 70% basic salary plus 30% point-based commission structure. [3] This provides greater job security while still incentivizing performance through incremental commissions. The new plan addresses issues with the previous straight commission plan.
1. Apple experienced significant growth between 2010 and 2012 across key product categories and geographies.
2. iPhone sales skyrocketed with the launch on new carriers like Verizon, though Android led the smartphone market. iPad maintained its leadership in tablets.
3. The company more than tripled its revenue and quadrupled its net income and cash holdings over this period through innovations, retail expansion, and new product introductions.
4. While Steve Jobs stepped down as CEO in 2011 due to health issues, Apple became the largest company by revenue and profit under new leadership.
Yushan Bicycles, a Taiwanese bicycle manufacturer, established subsidiaries in Asia, Europe, and Australia as part of its international expansion plan. Yushan Australia (YA) was experiencing quarterly losses due to issues with hiring staff, warehouse space, and delayed deliveries compared to other subsidiaries. The document identifies problems with YA's sales and supply chain strategies and lack of trust between YA and headquarters. It provides recommendations for YA to target new customer segments in Australia, improve communication between subsidiaries, and give Hamilton more time to implement his strategies to prove effectiveness.
Crocs is a footwear company known for its colorful, lightweight and breathable clogs made of Croslite material. It grew rapidly due to its innovative and highly flexible supply chain model that allowed retailers to place smaller pre-orders and reorder within seasons. Crocs core competencies include its supply chain flexibility and responsiveness, ownership of Croslite material production, and experienced management. It can further exploit these competencies through vertical integration, strategic acquisitions of other footwear brands, and expanding its product lines. Potential alternatives for growth include further vertical integration, acquisitions, and product line extensions.
The soft drink concentrate business is highly profitable due to low costs of production and barriers to entry. Concentrate producers require only $25-50 million for a plant that can serve the entire US market. They face little threat from new entrants due to patented formulas and brand equity built over decades of marketing. In contrast, bottlers face higher costs, more competition, and lower profits of around 35% due to factors like needing large capital investments for plants. However, Coke and Pepsi have been able to sustain profits through brand loyalty, expanding into new markets like juices, and leveraging their brand equity globally despite slowing carbonated drink demand.
This document analyzes Yell, a UK-based directory services company with both UK and US businesses, as a potential leveraged buyout opportunity. It provides financial projections and assumptions for the UK and US businesses, including adjusted growth rates and margins. It also details the company's debt structure, cash flows, and currency exchange rates that would need to be considered in an LBO. Key questions addressed are whether Yell is a good LBO candidate and why BT wants to sell the business.
Crafting winning strategies in a mature market - US wine marketSaurabh Arora
The US wine industry in 2001 was characterized by a mature market with a few large players dominating the low price segment. The top 8 firms produced over 75% of the volume while approximately 2,500 other firms split the remaining 25%. It was difficult for new companies to enter the industry due to high startup costs, oversupply of grapes, and consolidation among retailers and distributors. A company considering entry would need to target the 90% of the population that did not regularly drink wine or create a new market segment. The best strategy would be a blue ocean approach to expand the market rather than compete in the already crowded premium and budget segments. Established players should also look to tap new demand and acquire distribution to grow. The industry
Nestle is a large food and beverage company founded in 1866 that has traditionally used a hierarchical organizational structure. This structure was facing problems with encouraging contributions from employees. Nestle addressed this by appointing a new CEO and transforming to a more flexible structure to encourage collaboration across borders. They aimed to develop employees' leadership skills and embrace diversity.
This document discusses the evolving landscape of food certification. It notes that Nestle has over 400 factory laboratories working to achieve ISO 17025 accreditation. The food certification landscape is changing with more global acceptance of standards like ISO 22000 and FSSC 22000, and proprietary standards declining. There are challenges with too many standards being developed and inconsistent certification body quality, but also opportunities to develop industry consensus on standards and improve accreditation body oversight of certification bodies.
Alcon Corporate Presentation - short edition Sept 2016Yelena Fedorova
The document discusses Alcon's mission to discover new ways to enhance sight and improve people's lives. It notes that hundreds of millions of people worldwide are affected by eye diseases but that scientific and technological innovation is improving outcomes. Alcon operates in 74 countries and serves patients in over 140 countries, with a workforce of 16,000 people from 96 nationalities working to advance eye care.
Tom Buday, head of marketing, and Pete Blackshaw, head of digital and social media, gave this presentation to the Credit Suisse digital seminar on September 5 2013 in London
The document proposes a communication strategy to reposition Nestle Alpino chocolate in the Indian market. It aims to carve out a new "affordable premium" chocolate segment and position Alpino as a medium to express feelings to loved ones non-verbally. The strategy involves portraying real stories of people unable to verbally convey emotions and using Alpino chocolate instead. The budget is 15 crore rupees and success will be measured by awareness, attitude change, share of heart, and market share. The campaign aims to help Nestle enter a new market segment while expanding Alpino's customer base.
Brand Communication Strategy of Nestle's Maggialishajain342
This document provides an overview of the brand communication strategy of Maggi noodles before and after a 2015 food safety crisis in India.
Before the crisis, Maggi positioned itself as a quick cooking noodle brand targeting children and their mothers. It communicated messages around convenience and popularity. After being accused of containing unsafe lead and MSG levels, Maggi faced extreme backlash. It initially did not respond well to the crisis, lacking transparency and a strong communication response.
After months of rebuilding trust, Maggi launched new ad campaigns themed "#WeMissYouToo" featuring young men expressing how much they missed the brand. The objective was to shift negative emotions to nostalgia and rebuild affection for Maggi. A later campaign "#
Alcon, a leading pharmaceutical company in eye care products, has an opportunity to capture increased market share following recalls of competitor products. To sustain this growth, Alcon must expand manufacturing capacity to meet rising demand for consumer lens solutions, increase research on consumer products, and prioritize production of its own brands to boost profits. Alcon also needs to strengthen operational excellence to retain its larger share of the consumer lens care market long-term.
The document summarizes the history and operations of Nestle, beginning with its founding in Switzerland in 1867. It details Nestle's expansion to India in 1912 and growth over the past nine decades to become one of India's largest food companies. Nestle India now has seven manufacturing facilities, over 250,000 employees worldwide, and produces 8000 food and beverage products under famous brands like Maggi, Kit Kat, Nescafe, and Milkmaid. While inflation has squeezed profits by raising commodity prices, Nestle has focused on volume growth. It plans to further expand manufacturing capacity and launch new health food lines to penetrate both rural and urban Indian markets.
Nestle is the world's largest food and beverage company founded in Switzerland in 1867. It has over 280,000 employees operating in over 120 countries. Nestle's objective is to be the recognized leader in Nutrition, Health & Wellness. In India, Nestle has been operating since 1912 and was one of the first multinationals to set up a manufacturing plant in 1961. Nestle follows a business model of Creating Shared Value focusing on Nutrition, Health, Quality and Sustainability.
Nestlé is a global food and beverage company established in 1905 in Switzerland. It has grown significantly through acquisitions and innovation to offer products from morning to night including baby food, bottled water, cereal, chocolate and other confections. To continue growing, Nestlé focuses on emerging markets, health and wellness products, and out-of-home consumption. It aims to increase organic growth and profit margins through constant efficiency improvements and investments in research and development.
This document provides an overview of Nestlé, the largest food company in the world. It discusses Nestlé's industry analysis, products, corporate culture, strategy, organizational structure, and challenges. Nestlé operates in the food processing industry, producing packaged foods with extended shelf lives. It focuses on health, nutrition and wellness, and differentiates its products through quality and innovation. The company culture emphasizes flexibility, creativity, and responsiveness to markets. Nestlé's corporate strategy involves product differentiation, acquisitions, and creating shared value. It faces challenges around flexibility as a large company, supplier issues, and maintaining a positive public image.
Nestle is a global food and beverage company founded in 1867. It has 449 factories in 86 countries and employs over 328,000 people worldwide. The company focuses on nutrition, water, and rural development through its Creating Shared Value approach. Nestle implements various CSR programs focused on environmental sustainability, employee safety, education initiatives, and supporting local communities and small farmers.
Nestle is a global food and beverage company that has been operating for over 130 years. It began operations in Pakistan in 1988 by acquiring a dairy company. Nestle manufactures and sells dairy products, beverages, baby food, breakfast cereals and other foods in Pakistan. It aims to provide high quality, nutritious products to consumers across various age groups and socioeconomic statuses. Nestle has manufacturing plants in several major Pakistani cities and employs over 2,000 people in the country. Its goal is to meet consumer needs and preferences through constant innovation and new product development.
Nestlé operates in the highly competitive global food industry. The document analyzes Nestlé's external and internal environment through various frameworks. Externally, it finds opportunities through demographic trends but also threats from intense industry competition and substitute products. Internally, it examines Nestlé's resources, capabilities, core competencies and value chain, identifying strengths in R&D and a global network, but also weaknesses to address. Overall, the analysis informs Nestlé's current and future strategies to strengthen its strategic competitiveness.
DuPont at Bernstein's 31st Annual Strategic Decisions Conference 2015DupontInv
- DuPont is transforming its portfolio to focus on three strategic areas: Agriculture & Nutrition, Advanced Materials, and Bio-Based Industrials, which are large, growing markets aligned with its science capabilities.
- Through acquisitions and divestitures, DuPont has shifted its portfolio mix towards its strategic focus areas and away from less strategic businesses.
- DuPont's transformation strategy of driving operational efficiency, innovation, and growth in developing markets has delivered clear results, including 266% total shareholder return, $9B in annual sales from new products, and a 32% reduction in management headcount.
- Phillips 66 provides an investor update on its strategy, operations, and financial results. It aims to enhance safety, reliability and environmental stewardship while protecting shareholder value.
- The company is reshaping its portfolio by capturing growth opportunities in midstream and chemicals and enhancing returns from existing assets through efficiency improvements. It is committed to growing distributions and maintaining financial strength.
- Phillips 66 plans $3.9 billion in capital investments in 2016, including $2.6 billion for growth projects focused on its expanding midstream business and fee-based assets suitable for dropdown to Phillips 66 Partners. It expects adjusted EBITDA to grow 45% to $9.3 billion by 2018 driven by its midstream, chemicals and marketing
- Phillips 66 Partners announced a $314 million 2016 organic growth plan including projects to expand its Bayou Bridge Pipeline and build the Sacagawea Pipeline.
- The Bayou Bridge Pipeline expansion will increase crude oil transport from Nederland, Texas to refineries in Lake Charles and St. James, Louisiana.
- The Sacagawea Pipeline will connect Bakken crude oil production to a rail facility in North Dakota, providing additional logistics options for shippers.
- Owens Corning presented at an investor event on February 22, 2017 to discuss its Q1 2017 performance and outlook.
- The presentation highlighted Owens Corning's focus on shareholder value and discussed its three strong business segments: Insulation, Roofing, and Composites.
- Owens Corning has improved its portfolio and financial profile through cost reductions, acquisitions, investing in premium products, and improving capital efficiency. This has increased margins, return on capital, and free cash flow.
1) HGHAX had the highest returns over 3, 5, 8, and 10 years but also the highest expenses. IYH and SPY had lower returns but much lower expenses.
2) IYH and SPY had lower standard deviations, indicating less volatility than HGHAX. IYH in particular had the lowest risk.
3) IYH had the highest Sharpe Ratios over 3 and 5 years, meaning it had the best risk-adjusted returns. SPY had the lowest Sharpe Ratios, indicating poorer risk-adjusted performance.
Estudo sobre as 900 maiores empresas familiares do mundo - Credit Suisse 17 de jul 2015
O Credit Suisse lançou em julho/2015 um estudo sobre as 900 maiores empresas familiares do mundo. Vale a pena conferir as maiores por região e também os inúmeros casos como por exemplo o Wall Mart.
Thought leadership from Credit Suisse Research
and the world’s foremost experts
OC Roadshow Hosted by Bank of America Merrill Lynch – PhiladelphiaCorning_Owens
Owens Corning presented at investor events on February 28th and 22nd, 2017. The presentation focused on Owens Corning's portfolio of three strong businesses (insulation, roofing, composites), which have improved earnings and cash flow through portfolio actions. Owens Corning has a disciplined capital allocation strategy to drive shareholder returns through organic and inorganic growth while maintaining an investment grade balance sheet.
Wells Fargo Real Estate Securities Conference – New YorkCorning_Owens
This presentation summarizes Owens Corning's performance in Q1 2017. It was shared at investor conferences in February and March 2017. Owens Corning has three strong businesses - Insulation, Roofing, and Composites - and is focused on delivering shareholder value. Through portfolio improvements like acquisitions and cost reductions, the company has increased margins, return on capital, and free cash flow in recent years. Owens Corning believes its businesses are well positioned with attractive macroeconomic drivers and opportunities for further growth.
Owens Corning presented information at investor events in June 2017. The presentation discussed Owens Corning's focus on shareholder value and provided an overview of the company's Q2 2017 performance. It summarized the company's three business segments and highlighted its improved portfolio, earnings, cash flow, and macroeconomic drivers. Owens Corning aims to invest in organic growth, pursue value-creating acquisitions, and return cash to shareholders.
Owens Corning presented at an investor event on June 13, 2017. The presentation focused on Owens Corning's commitment to shareholder value and provided an overview of the company's three business segments. Owens Corning has improved its portfolio and financial profile in recent years through cost reductions, acquisitions, and growth in higher-margin businesses. This has increased the company's adjusted EBIT margins and return on capital. Owens Corning also has a strong cash flow outlook and disciplined capital allocation strategy to support growth and return cash to shareholders.
This document summarizes the performance of oyster businesses in South Australia, Tasmania, and New South Wales that participated in an oyster industry benchmarking program for the 2010-2011 production year. On average, Tasmanian businesses operated the largest lease areas, had the most employees, and produced the most oysters per business. Tasmanian businesses also achieved the highest average income and profit per business. NSW businesses had the lowest average profit and some experienced losses after considering owner wages. Overall, the most profitable businesses were finished oyster producers and one on-grower that sold between 100,000-500,000 dozen oysters annually.
OBU – Oxford Brookes University BSc Honours in Applied Accounting.Academic Mania
Topic 8: The Business and Financial Performance of an Organization over a three year period.’
Oxford Brookes (OBU) ACCA Applied Accounting RAP Thesis For
ACCA Oxford Brookes BSc (Hons) in Applied Accounting
OC Roadshow Hosted by Wells Fargo – Montreal / TorontoCorning_Owens
This presentation discusses Owens Corning's third quarter 2017 performance with a focus on shareholder value. It provides an overview of the company, which operates three businesses: Insulation, Roofing, and Composites. Owens Corning has improved its portfolio and financial profile in recent years through cost reductions, acquisitions, and serving market needs. It maintains a disciplined capital allocation strategy and strong cash flow outlook.
This document provides an overview of Owens Corning for investors attending an event in August 2017. It discusses Owens Corning's three business segments: Insulation, Roofing, and Composites. It highlights how portfolio improvements over the last several years have lifted margins and returns. Free cash flow has also significantly improved. Owens Corning has a disciplined capital allocation strategy and strong cash flow outlook. The Insulation and Roofing businesses each provide details on market positions, historical performance, and growth opportunities.
- Owens Corning presented at investor events in May 2017 to discuss its Q2 2017 performance and focus on shareholder value.
- The presentation discussed Owens Corning's three business segments: Insulation, Roofing, and Composites, and emphasized its leadership positions, attractive end markets, and focus on improving margins, earnings, cash flow, and return on capital through portfolio improvements.
- Owens Corning has demonstrated significant improvement in its financial profile and cash flow generation over the past several years through repositioning its business portfolio.
The document is a presentation from Owens Corning focused on shareholder value for Q3 2017. It discusses Owens Corning's three strong businesses: Insulation, Roofing, and Composites. Through portfolio improvement, Owens Corning has lifted its margin profile, boosted return on capital, and significantly improved free cash flow. Owens Corning has a disciplined capital allocation strategy focused on organic and inorganic growth, maintaining an investment grade balance sheet, and returning cash to shareholders.
Luxottica, Cole National, Acquisition Dynamics in the Optic Sector - DDIM 201...Vito
Luxottica agreed to acquire Cole National Corp for $22.5 per share, valuing the deal at $662 million. However, a counter bid was made by Moulin International for $25 per share. Luxottica analyzed comparable companies and transactions to determine a fair price, estimating a range of $25-27 per share given expected synergies. While a higher price than originally offered, countering Moulin's bid at $25 was justified to obtain synergies from combining with Cole National.
Phillips 66 Partners reported $1.8 billion in adjusted EBITDA and $1.1 billion in capital expenditures for the first quarter of 2015. The company acquired interests in three pipeline assets for $1.1 billion, which are expected to generate $115 million in EBITDA for 2015. Phillips 66 Partners also announced $275 million in organic growth projects, focused on expanding its Bakken and Eagle Ford midstream infrastructure.
Owens Corning presented information on its Q2 2017 performance focused on shareholder value. It operates three strong businesses: Insulation, Roofing, and Composites. The presentation discussed OC's investment thesis of having market leading businesses, improved portfolio performance and earnings, and attractive macroeconomic drivers. It also provided an overview of each business segment and their financial profiles.
Seminar 8 creating an investment recommendationpvalantagul
The document provides guidance on creating an investment recommendation and pitching a stock. It outlines the key components of a stock pitch, including analyzing if a company is a good business and if it will be a good stock. An example stock pitch for Waste Management is then presented, analyzing the company, industry, financials, valuation, opportunities/risks, and recommending the stock as a buy. The document emphasizes synthesizing information from prior seminars to develop an investment thesis and recommendation.
Similar to Nestlé and Alcon, The Value of a listing - DDIM2011 Shanghai - group 9 (20)
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
Nestlé and Alcon, The Value of a listing - DDIM2011 Shanghai - group 9
1. Nestlè and Alcon: “ the value of a listing ” Group 9 Yu Yu Gao Yi Ling Sun Marta Caccamo Marta Cenni Flavia Assogna Wei Liu Daniele Corti Vito Margiotta
2. World ’s NUMBER ONE food company (2000) WE ARE HERE TO TALK ABOUT
6. - Company ’ s value is underestimated. - Increase the overall understanding of company ’ s business (especially in terms of financial forecasting accuracy) - Enhance company liquidity. Part 1 of 2 Financial Reasons See note for an in-depth explanation and additional reasons.
7. Part 2 of 2 - Target and attract specialty pharmaceutical investors. - Focus and leverage on Nestlé core business. - Eager company strategy planning process. - Decrease agency problems by implementing a managerial stock option plan. Managerial Reasons See note for an in-depth explanation and additional reasons.
8. Enterprise Value, million USD Total EV Added = 7.300 Million USD = 7.49% NOTE: See appendix for further clarification. 97500
18. BEFORE BREAKING DOWN EBITDA EV/EBITDA Multiple Value Nestle - Alcon 6957.87 a 12.725 88540 Alcon 704.13 b 12.725 8960 Total 7662 12.725 97500
19. Schweppes is not chosen because of its low involvement in F&B industry. Danone and Unilevel are not included due to incomplete data. Allergan is not considered because of its low involvement in Pharma industry. BREAK DOWN Company %F&B Industry EV/EBITDA Multiples Cambell 91% 11.02 GeneralMills 100% 18.94 Heinz 100% 10.38 Kellog 100% 11.14 Kraft 100% 5.01 F&B Average 11.30 Company % Pharma industry EV/EBITDA Multiples Allergan 63% 22.41 King 86% 24.48 Teva 88% 18.63 Forest 100% 31.47 Pharma Average 24.25
20. AFTER BREAKING DOWN EBITDA EV/EBITDA Multiple Value Nestle F&B 6957.87 11.30 78624 Alcon 704.13 24.25 17075.15 L'Oreal _ - 9100 a Total - - 104800
Editor's Notes
No need for further company descriptions given the fact the presentation is addressed to Nestle’s managers.
- Let emerge the real value of Alcon, actually buried in the food and beverage ocean of Nestlé: Alcon’s business and performance is not properly evaluated inside Nestlè capitalization from the analysts. Alcon is now accounted by analysts as a part of Nestlé food & beverage business because it represents just a small part of Nestlé’s business. - Alcon’s value can be better understood by analysts and investors: when conglomerate breakups lead to an increase in analyst forecast accuracy thanks to the fact that new analysts with relevant industry expertise will begin covering the newly listed company. - Alcon could have higher evaluation multiples (by carving put Alcon, it ’ s likely that Nestle will have higher evaluation too). Nowadays the final price at which Nestlè security is traded is similar to the F&B competitors multiples. If Alcon would be carved out from Nestlé its value could be better evaluated by analysts, and the company could target specialty pharmaceutical investors in the stock market. - Create liquidity in order to overcome the cash needed for the Ralston-Purina acquisition; - Alcon’s carve out is also facilitated because Alcon is already a financially independent entity with its own capital structure inside Nestlé.
- Incentive for managers of Alcon through a stock options program; - Focus better on the core business: i nside its sector Alcon is the market leader with a strong R&D commitment and promising projects in the pipeline; - Make easier the assessment of the value of the single business units; - Lay the foundation for an eventual future sale of Alcon ( probably in order to focus on the core business in a long-run perspective) - Easier planning of the future strategies for each business: Alcon operates in a different industry than Nestlé, characterized by higher market growth, lower competition and positive future forecasting; moreover competition is slowing as competitors are divesting their operations from that business. Be separated by Nestle could lead to a better and more focused decision process.
We consider IPO to be the best alternative possible in order to persuade our customers to use our service. It is for this reason that we decided not to include in the presentation any other viable solution regarding Alcon. There are, anyway, several other possible alternatives for this company. Among those are: 1- SALES TO COMPETITORS Nestlé Group could try to sell Alcon to some other pharmaceutical holdings. The sale of Alcon, however, has different drawbacks: 1-As Alcon has great power to earn revenue in the future and the current operation situation is satisfactory; selling it would have a high cost of capital. And holding Alcon will continue bring value for Nestlé’s shareholders. 2-loss control of Alcon, nevertheless a profitable company. Based on these two main reasons, it is not recommended (and anyway not in our intentions) to sale Alcon to competitors. 2- LEVERAGED BUY OUT There is no hint that the original management team has the intension to do the LBO.
Our final recommendation to Nestlé group’s management team is to list Alcon on the US market. The rationale behind it is to potentially solve the company’s financial needs by listing in a market larger and with a broader institutional investment base. The United States market will also provide to the company a greater visibility in the international environment. Moreover, the cost of listing in the US market is commensurate to the return Alcon will make out of it. For U.S.listing, Alcon should change the name to Alcon.inc , have the new American style board, follow GAAP Reporting System and make conversion of employees compensation plans in stock options. Besides, listing in U.S. would make the financing channel closer to headquarter, R&D centre and the primary market. For Swiss listing, the small market size is not satisfactory and it is unfavorable under a managerial standpoint given the fact that more than half of Alcon’s operations and sales are within USA. Dual listing is not necessary because it is an extraordinarily expensive procedure due to replication costs as well as potentially leading to a flow back effect. As for the ADR, Alcon would be recognized as a foreign company and face strict requirements in order to adhere to direct listing. It would potentially narrow the investment base and raise overall costs. Furthermore, it is not a good choice for trading in secondary market, due to time lag and higher commissions. Moreover, ADR could attract international diversified funds instead of specialty pharmaceutical investors, which would be in the interest of the firm.