A presentation I did for my Leadership and Special Topics in Pharmaceutical Marketing and Management class on social media. I completed this project with Tae Lee.
At the outset, I would like to congratulate you for all the effort in writing these two books. It is a necessity for the Pharma Industry. There are number of books and publications available on top management functions but hardly, we come across books on basics for the basic functions – like Strategic Pharma Selling for MR and FM. These should be the text book for all aspiring and practising MR and FM. I am sure it will help them to understand the art and science of Pharma Selling and help in developing leadership skills. Finally, what our country needs today and more for tomorrow is ‘Sells PULL’ than ‘Sells PUSH’. Hope your book will contribute towards this object. I would like to share few copies of your books with my Industry friends and MDP participants. I am not sure whether the book is available in any of the Kolkata book stores. If not, it would be nice if you could request the publisher to help me buy five copies of each book at the earliest so I may share these with the participants during June and July MDPs.
Sanjoy Mitra , Managing Director, SMSRC Private Limited
The pharmaceutical industry faces significant challenges in developing new drugs including rising costs, decreased returns on investment, and a more complex regulatory environment. Development times and costs have increased dramatically, while success rates have declined. Return on investment for R&D has turned negative as development costs have risen much faster than sales. Additionally, regulatory requirements have increased, requiring more extensive safety data and outcomes evidence prior to approval. These challenges are driving the need for changes across the industry.
ROLES RESPONSIBILITY AND CHALLENGES OF TRAINNIG MANAGERMOHIT SHARMA
A training manager organizes and manages training programs within an organization to ensure employees gain skills to perform their jobs effectively. They identify training needs by relating to all levels of staff. Key responsibilities include conducting new hire orientation, evaluating training programs, developing testing and training materials, and analyzing training needs to develop new programs. Training managers face challenges of keeping training budgets and programs up-to-date amid changing legislation, technology, and skill requirements.
What's next for the investment management industry?SimCorp
“It's difficult to predict. Especially about the future."
It may be debatable who the source of the above quote is: Mark Twain, Storm P., Niels Bohr or Yogi Berra. But the truth of it struck us as particularly relevant as we looked back at the tumultuous events of the past twelve months in preparation for writing this outlook on the year ahead.
1Fashion Institute of Design and MerchandisingFall 202.docxrobert345678
1
Fashion Institute of Design and Merchandising
Fall 2022
BUMT 4200: Financial Management
A Case Study Research and Analysis of Microsoft Corporation
By: Elizabeth Manriquez, Josefina McKinnon, Najila Miles, Yen Pham & Melanie
Pesqueira
December 6, 2022
2
Table of Contents:
1. Introduction- Pg. 3
2. Major Findings- Pg.4
3. Implications on the Five Elements of a Business Model- Pg. 6
4. Historical Performance of the Firm- Pg.10
5. Current Financial Issues and Factors of the Firm- Pg.15
6. Financial Ratio Analysis- Pg.18
7. Assessment of Risk and Return on Capital Budget- Pg.28
8. Sales Forecasts Analysis and Implications on Cash Inflows- Pg.29
9. Recommendations and
Solution
s- Pg.30
10.Conclusion- Pg.32
11.Works Cited- Pg. 34
3
1. Introduction:
Microsoft Corporation is an American global technology corporation located in Redmond,
Washington. It is one of the largest software companies in the world and develops, manufactures,
licenses, supports, and sells computer software, consumer electronics, personal computers, and
related services. Bill Gates and Paul Allen launched the firm in 1975, and it is now one of the
world's largest software corporations, with over 13,000 employees and a market valuation of
more than $541 billion, with a market capitalization of more than $1 trillion as of June 2020.
Satya Nadella, Microsoft's current CEO, oversees the senior leadership team and is in
charge of the company's strategy and operations. He is supported by six other executive officers:
Amy Hood, Chief Financial Officer, Kevin Turner, Jean-Philippe Courtois, Chief Technology
Officer and Chief Strategy Officer, Chris Capossela, Chief Marketing Officer and Executive Vice
President Judson Althoff, and Kathleen Hogan, Chief Human Resources Officer. The Board of
Directors of Microsoft is made up of eleven individuals, nine of whom are independent of the
firm. The Board of Directors is comprised of the following individuals: John W. Thompson,
Chairman of the Board; Satya Nadella, Chief Executive Officer; Reid Hoffman, Partner at
Greylock Partners; Maria Klawe, President of Harvey Mudd College; Dina Dublon, Member of
the Board of Directors of JP Morgan Chase and Company; G. Mason Morfit, President of Value
Act Capital; Satya Nadella, Chief Executive Officer; Charles H. Noski, Former Vice Chairman
of Bank of America; Helmu Investors and experts have applauded Microsoft's corporate
governance, with the majority of the Board of Directors being independent of the corporation.
This is critical for the corporation in order to maintain a balance of power among the Directors
and to preserve shareholders' interests. The Board of Directors is in charge of determining the
4
company's strategic goals, approving management choices, and supervising the company's
financial performance.
Microsoft's Board of Directors is responsible for providing oversight of the company's
operations and strategic direction, as well as moni.
Nicholas Hoffmeyer - Adobe Systems - BL_S2_2016Nick Hoffmeyer
Adobe Systems successfully transformed its business model from desktop software licenses to cloud-based subscriptions under CEO Shantanu Narayen. Facing challenges like slowing growth and high piracy rates, Narayen shifted Adobe's focus to the entire creative content value chain and cloud subscriptions. This transition was difficult but enabled faster innovation, recurring revenues, and access to new customers. Through acquisitions, restructuring, and convincing employees of the vision, Narayen completed the transformation in just three years, propelling Adobe's growth and market position.
A presentation I did for my Leadership and Special Topics in Pharmaceutical Marketing and Management class on social media. I completed this project with Tae Lee.
At the outset, I would like to congratulate you for all the effort in writing these two books. It is a necessity for the Pharma Industry. There are number of books and publications available on top management functions but hardly, we come across books on basics for the basic functions – like Strategic Pharma Selling for MR and FM. These should be the text book for all aspiring and practising MR and FM. I am sure it will help them to understand the art and science of Pharma Selling and help in developing leadership skills. Finally, what our country needs today and more for tomorrow is ‘Sells PULL’ than ‘Sells PUSH’. Hope your book will contribute towards this object. I would like to share few copies of your books with my Industry friends and MDP participants. I am not sure whether the book is available in any of the Kolkata book stores. If not, it would be nice if you could request the publisher to help me buy five copies of each book at the earliest so I may share these with the participants during June and July MDPs.
Sanjoy Mitra , Managing Director, SMSRC Private Limited
The pharmaceutical industry faces significant challenges in developing new drugs including rising costs, decreased returns on investment, and a more complex regulatory environment. Development times and costs have increased dramatically, while success rates have declined. Return on investment for R&D has turned negative as development costs have risen much faster than sales. Additionally, regulatory requirements have increased, requiring more extensive safety data and outcomes evidence prior to approval. These challenges are driving the need for changes across the industry.
ROLES RESPONSIBILITY AND CHALLENGES OF TRAINNIG MANAGERMOHIT SHARMA
A training manager organizes and manages training programs within an organization to ensure employees gain skills to perform their jobs effectively. They identify training needs by relating to all levels of staff. Key responsibilities include conducting new hire orientation, evaluating training programs, developing testing and training materials, and analyzing training needs to develop new programs. Training managers face challenges of keeping training budgets and programs up-to-date amid changing legislation, technology, and skill requirements.
What's next for the investment management industry?SimCorp
“It's difficult to predict. Especially about the future."
It may be debatable who the source of the above quote is: Mark Twain, Storm P., Niels Bohr or Yogi Berra. But the truth of it struck us as particularly relevant as we looked back at the tumultuous events of the past twelve months in preparation for writing this outlook on the year ahead.
1Fashion Institute of Design and MerchandisingFall 202.docxrobert345678
1
Fashion Institute of Design and Merchandising
Fall 2022
BUMT 4200: Financial Management
A Case Study Research and Analysis of Microsoft Corporation
By: Elizabeth Manriquez, Josefina McKinnon, Najila Miles, Yen Pham & Melanie
Pesqueira
December 6, 2022
2
Table of Contents:
1. Introduction- Pg. 3
2. Major Findings- Pg.4
3. Implications on the Five Elements of a Business Model- Pg. 6
4. Historical Performance of the Firm- Pg.10
5. Current Financial Issues and Factors of the Firm- Pg.15
6. Financial Ratio Analysis- Pg.18
7. Assessment of Risk and Return on Capital Budget- Pg.28
8. Sales Forecasts Analysis and Implications on Cash Inflows- Pg.29
9. Recommendations and
Solution
s- Pg.30
10.Conclusion- Pg.32
11.Works Cited- Pg. 34
3
1. Introduction:
Microsoft Corporation is an American global technology corporation located in Redmond,
Washington. It is one of the largest software companies in the world and develops, manufactures,
licenses, supports, and sells computer software, consumer electronics, personal computers, and
related services. Bill Gates and Paul Allen launched the firm in 1975, and it is now one of the
world's largest software corporations, with over 13,000 employees and a market valuation of
more than $541 billion, with a market capitalization of more than $1 trillion as of June 2020.
Satya Nadella, Microsoft's current CEO, oversees the senior leadership team and is in
charge of the company's strategy and operations. He is supported by six other executive officers:
Amy Hood, Chief Financial Officer, Kevin Turner, Jean-Philippe Courtois, Chief Technology
Officer and Chief Strategy Officer, Chris Capossela, Chief Marketing Officer and Executive Vice
President Judson Althoff, and Kathleen Hogan, Chief Human Resources Officer. The Board of
Directors of Microsoft is made up of eleven individuals, nine of whom are independent of the
firm. The Board of Directors is comprised of the following individuals: John W. Thompson,
Chairman of the Board; Satya Nadella, Chief Executive Officer; Reid Hoffman, Partner at
Greylock Partners; Maria Klawe, President of Harvey Mudd College; Dina Dublon, Member of
the Board of Directors of JP Morgan Chase and Company; G. Mason Morfit, President of Value
Act Capital; Satya Nadella, Chief Executive Officer; Charles H. Noski, Former Vice Chairman
of Bank of America; Helmu Investors and experts have applauded Microsoft's corporate
governance, with the majority of the Board of Directors being independent of the corporation.
This is critical for the corporation in order to maintain a balance of power among the Directors
and to preserve shareholders' interests. The Board of Directors is in charge of determining the
4
company's strategic goals, approving management choices, and supervising the company's
financial performance.
Microsoft's Board of Directors is responsible for providing oversight of the company's
operations and strategic direction, as well as moni.
Nicholas Hoffmeyer - Adobe Systems - BL_S2_2016Nick Hoffmeyer
Adobe Systems successfully transformed its business model from desktop software licenses to cloud-based subscriptions under CEO Shantanu Narayen. Facing challenges like slowing growth and high piracy rates, Narayen shifted Adobe's focus to the entire creative content value chain and cloud subscriptions. This transition was difficult but enabled faster innovation, recurring revenues, and access to new customers. Through acquisitions, restructuring, and convincing employees of the vision, Narayen completed the transformation in just three years, propelling Adobe's growth and market position.
Now in its ninth year, the Supply Chains to Admire analysis is a study of the progress of each industry sector on the balanced scorecard of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Twenty-two companies outperform their peer group, defining and exemplifying supply chain excellence.
Pund-IT: Getting Things Right—Software and IBM’s Acquisition StrategyMauricio Godoy
This weekly review discusses IBM's acquisition strategy and how it has contributed to the company's success. The document summarizes that IBM has completed over 120 acquisitions since 2002, more than 70 of which were software related. These acquisitions have helped IBM expand into new markets, round out its product portfolio more quickly, and drive strategies like Smarter Planet. The review also examines IBM's recent acquisitions of Algorithmics and i2 as examples of deals that strengthen IBM's analytics offerings for industries like banking and retail. It concludes that IBM's track record of integration success positions it well to continue leveraging acquisitions for growth.
The document analyzes J2 Global Communications (JCOM) and finds its stock undervalued. Key reasons for undervaluation are embedded expectations that JCOM's core eFax business is declining, lack of belief in management's ability, and skepticism around cash usage. However, the analysis identifies catalysts that could drive the stock price up, including continued ROI growth exceeding expectations, strategic fit of recent acquisitions, and understanding that eFax remains innovative in new markets.
Emerging Technologies - The Future Of Finance (CIMA Feb 2019)Michael Sadler
A presentation by IBM on the topic of "The Future Of Finance" examining emerging trends, and how accountants can to prepare for the transition from "running the numbers" to being value-adding partners to the business.
2003 closes out as planned rays of sunshine for it market in 2004ARC Advisory Group
The document provides predictions for IT trends in manufacturing and supply chains for the years 2003 and 2004 from ARC Insights. For 2003, it summarizes that 7 of ARC's 10 predictions were accurate, with the remaining 3 being mixed. For 2004, it outlines 10 new predictions, including that IT spending will accelerate, consolidation will continue, acceptance of application service providers will grow and split into two models, and supply chain execution suppliers will lead in supporting manufacturers' RFID compliance efforts. It provides analysis and context for each prediction.
The document provides an overview of Lender Processing Services (LPS) and its end-to-end mortgage solutions. LPS offers a comprehensive suite of technology solutions, data services, and processing services to support the origination, servicing, and default portions of the mortgage lifecycle. LPS has leading market positions and long-term relationships with the largest financial institutions in the country.
This document analyzes the financial ratios of Microsoft, Apple, and Intel from 2013-2015. It finds that Microsoft's profitability ratios like gross profit margin, operating profit margin, and net profit margin all decreased significantly from 2013 to 2015. Its return on assets also fell sharply. However, Microsoft still maintains strong liquidity and low debt levels. Apple consistently demonstrates high profitability ratios and returns. Intel exhibits steady growth and low risk in its capital structure. The document evaluates the companies' performance across various financial metrics to understand their relative strengths and weaknesses.
Herein I place below the Buyout Process as mentioned in Investopedia and what my book CREAM Analytics suggests to implement: this would be useful for Buyout Management.
Case 48 Sun Microsystems Done by Nour Abdulaziz Maryam .docxannandleola
Case 48: Sun Microsystems
Done by: Nour Abdulaziz
Maryam Barifah
Shrouq Al-Jaadi
Balqees Mekhalfi
Yara El-Feki
Introduction
•In 2009, Oracle was planning to acquire Sun Microsystems.
•This acquisition would allow Oracle;
•to further diversify their brand, customers and acquire various new platforms that would be added to their portfolio such as MySQL, Solaris and Java.
•Oracle originally placed an offer of $9.50 per share price which is considerably higher than Sun Microsystem’s price that is $6.69.
•This will cut the production costs and make the company more efficient throughout all the value chain.
•Oracle aimed to capitalize on Sun Microsystem’s decline by getting particular assets or the whole company at the deflated price.
Is Sun Microsystems a good strategic fit for Oracle? Should Oracle acquire Sun Microsystems?
- as it will allow them to achieve their vision of becoming the Apple of the software industry.
- it will allow the company to deliver high-quality customer products by combining both hardware and software components, hence reducing the consumer setup process.
Continue
It will provide Oracle with the needed expansion.
-This acquisition fits Oracle’s overall strategy which is to improve through acquiring and effectively integrating other companies
Worth of Sun Microsystems and Valuation Approaches
To know how much Sun Microsystems worth, we must find the Stand Alone Value of the company.
The Stand Alone value represents the present value of Sun Microsystem individually before factoring the synergy that would be created when Oracle acquires Sun.
Another method is the value of Sun Microsystem with synergies, which after being acquired by Oracle, must be found. This is done to see whether or not the acquisition was a proper strategic decision or not
Another method of valuing the Sun Microsystem is through the comparative company analysis (CCA). That is done through the thorough assessment of rival and peer businesses of similar size and industry.
Finally, the acquisition price, which is the price that is paid to the target when it is first acquired, is also used as a separate method of valuation. The value of the acquisition price ranges between the values of the stand-alone and the synergies.
USING THE DCF
To be able to find the values of both, the Stand Alone and the synergies, we have decided the best way to do so is by calculating the discounted cash flow (DCF) by using the multiples and the perpetuity growth methods and finding the average of both.
DCF Using Multiples MethodDCF Using Perpetuity Growth MethodIt does not consider long-term growth rate or the economics of business.This method seems inaccurate as the company assumes a certain growth rate will remains the same 2014 onwards (forever) which is unrealistic.It is considered a challenging method to use as it is very difficult to identify truly comparable companies.
USING THE WACC
The weig.
Supply Chains to Admire Analysis for 2019Lora Cecere
This document provides a summary of the 2019 Supply Chains to Admire report, which analyzes 515 public companies across 28 industries to identify top supply chain performers. 23 companies met the criteria for excellence by outperforming peers on metrics like growth, margins, inventory turns and returns. Notable winners include Apple, L'Oreal, and Lockheed Martin. The report finds alignment across functions, a focus on long-term goals, and managing complexity are characteristics of strong supply chain organizations. It provides recommendations on benchmarking, driving value through growth and networks, and maintaining leadership consistency.
The document discusses several megatrends shaping the IT world including growth in emerging markets, increasing amounts of data ("big data"), security threats, analytics, cloud computing, mobility, and social business. It outlines IBM's transformation to a "smarter" approach focused on instrumented, interconnected and intelligent systems. Key technologies discussed include Watson, predictive analytics, expert integrated systems, storage class memory, and mobile/cloud platforms. The trends point to a more data-centric architecture and analytics approaches needed to make sense of unprecedented data volumes and varieties.
This document summarizes the state of open source adoption and use in business intelligence and data warehousing. It finds that open source BI tools are becoming more mature and commonly used, especially for reporting and databases. Surveys show over 30% of companies are using open source BI in production environments, with the most common reasons for evaluating them being cost savings and concerns about vendor lock-in with proprietary solutions. However, open source solutions still have issues with missing features and integration that need to be addressed for broader adoption.
In May 2012, CFO Research conducted a survey among senior finance executives at large U.S. companies to examine their views on the business value of cloud computing, as well as their plans and priorities for adopting cloud-based systems in the years ahead.
Summary report of research on supply chain performance in the pandemic. During COVID-19, supply chains were significantly less agile. Innovative companies did better than laggards. When companies were mature in finite scheduling, sales and operations planning and Available to Promise (ATP), manufacturers were more agile and reponsive.
Paul Young is a CPA and expert in several areas including close, consolidate and reporting cycle, risk management, ESG reporting, data strategy, and emerging technologies. The document discusses key focus areas for CFOs such as automation, remote work, ESG reporting, and upskilling. It also covers challenges for accounting like regulatory filing issues, time to close, pain points in the close cycle, and the move to continuous accounting. New technologies like AI, cloud solutions, and analytics can help address these issues.
Blockchain rewires INDUSTRY PERSPECTIVES-2Keith Bear
This document discusses how blockchain technology could impact financial markets according to a survey of 200 financial institutions. It finds that 14% expect to have blockchains in commercial production by 2017, which it calls "Trailblazers". Trailblazers expect blockchains to reduce "invisible threats" from new competitors and business models. They see the greatest benefits in clearing and settlements, wholesale payments, equity/debt issuance, and reference data. While most institutions don't expect major disruption, Trailblazers see opportunities for new business models in clearing/settlements, payments, and equity/debt markets. Regulations may be delaying disruption in some areas.
This document discusses how "Trailblazers" in the financial markets industry, which make up 14% of respondents in a survey, are early adopters of blockchain technology who expect to have blockchain solutions in commercial production and at scale by 2017. The document outlines key findings about the Trailblazers, including that they prioritize reducing costs through blockchain in areas like wholesale payments, clearing and settlements, and reference data. While most financial institutions do not expect much disruption from blockchain, the Trailblazers see opportunities for new business models in areas like equity and debt issuance.
The document is a 2009 Cloud Computing Trends Report that summarizes the results of a survey of 644 respondents on their views and plans regarding cloud computing. Key findings include that the top three drivers for adopting cloud services are similar across company sizes and primarily include cost savings, uptime/availability, and performance. Security is the top concern for cloud computing providers to overcome. Approximately one third of respondents expect cloud computing to impact their company within 12 months.
This document provides an agenda and summaries for a presentation by Paul Young on the topics of close, consolidate and reporting cycles. The presentation covers Paul's background and areas of expertise. It then outlines trends in accounting for 2022 related to employee expectations, regulatory scrutiny, and inflation. Other topics on the agenda include continuous reporting, accounting trends for 2022, technology improvements for organizations, and challenges for chief financial officers. Risk management, internal audit, artificial intelligence, virtual close cycles, and supply chain issues are also discussed.
There has been a lack of substantive data about the state of open source in the business intelligence and data warehousing market. In this presentation noted industry analyst Mark Madsen will present the results of recent market research on adoption profiles and characteristics for open source BI/DW.
This research surveyed adopters of open source to understand their reasons for adoption and the benefits they experienced. It also captured user demographics to identify who is adopting open source for BI/DW, where they are deploying it, and how it’s being used. Two highly experienced open source BI practitioners, Bruce Belvin (President, Monolith Software Solutions) and Jay Webster (President and COO at Consorte Media) will describe their BI implementations, their criteria and selection methodology, and share best practices.
Now in its ninth year, the Supply Chains to Admire analysis is a study of the progress of each industry sector on the balanced scorecard of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Twenty-two companies outperform their peer group, defining and exemplifying supply chain excellence.
Pund-IT: Getting Things Right—Software and IBM’s Acquisition StrategyMauricio Godoy
This weekly review discusses IBM's acquisition strategy and how it has contributed to the company's success. The document summarizes that IBM has completed over 120 acquisitions since 2002, more than 70 of which were software related. These acquisitions have helped IBM expand into new markets, round out its product portfolio more quickly, and drive strategies like Smarter Planet. The review also examines IBM's recent acquisitions of Algorithmics and i2 as examples of deals that strengthen IBM's analytics offerings for industries like banking and retail. It concludes that IBM's track record of integration success positions it well to continue leveraging acquisitions for growth.
The document analyzes J2 Global Communications (JCOM) and finds its stock undervalued. Key reasons for undervaluation are embedded expectations that JCOM's core eFax business is declining, lack of belief in management's ability, and skepticism around cash usage. However, the analysis identifies catalysts that could drive the stock price up, including continued ROI growth exceeding expectations, strategic fit of recent acquisitions, and understanding that eFax remains innovative in new markets.
Emerging Technologies - The Future Of Finance (CIMA Feb 2019)Michael Sadler
A presentation by IBM on the topic of "The Future Of Finance" examining emerging trends, and how accountants can to prepare for the transition from "running the numbers" to being value-adding partners to the business.
2003 closes out as planned rays of sunshine for it market in 2004ARC Advisory Group
The document provides predictions for IT trends in manufacturing and supply chains for the years 2003 and 2004 from ARC Insights. For 2003, it summarizes that 7 of ARC's 10 predictions were accurate, with the remaining 3 being mixed. For 2004, it outlines 10 new predictions, including that IT spending will accelerate, consolidation will continue, acceptance of application service providers will grow and split into two models, and supply chain execution suppliers will lead in supporting manufacturers' RFID compliance efforts. It provides analysis and context for each prediction.
The document provides an overview of Lender Processing Services (LPS) and its end-to-end mortgage solutions. LPS offers a comprehensive suite of technology solutions, data services, and processing services to support the origination, servicing, and default portions of the mortgage lifecycle. LPS has leading market positions and long-term relationships with the largest financial institutions in the country.
This document analyzes the financial ratios of Microsoft, Apple, and Intel from 2013-2015. It finds that Microsoft's profitability ratios like gross profit margin, operating profit margin, and net profit margin all decreased significantly from 2013 to 2015. Its return on assets also fell sharply. However, Microsoft still maintains strong liquidity and low debt levels. Apple consistently demonstrates high profitability ratios and returns. Intel exhibits steady growth and low risk in its capital structure. The document evaluates the companies' performance across various financial metrics to understand their relative strengths and weaknesses.
Herein I place below the Buyout Process as mentioned in Investopedia and what my book CREAM Analytics suggests to implement: this would be useful for Buyout Management.
Case 48 Sun Microsystems Done by Nour Abdulaziz Maryam .docxannandleola
Case 48: Sun Microsystems
Done by: Nour Abdulaziz
Maryam Barifah
Shrouq Al-Jaadi
Balqees Mekhalfi
Yara El-Feki
Introduction
•In 2009, Oracle was planning to acquire Sun Microsystems.
•This acquisition would allow Oracle;
•to further diversify their brand, customers and acquire various new platforms that would be added to their portfolio such as MySQL, Solaris and Java.
•Oracle originally placed an offer of $9.50 per share price which is considerably higher than Sun Microsystem’s price that is $6.69.
•This will cut the production costs and make the company more efficient throughout all the value chain.
•Oracle aimed to capitalize on Sun Microsystem’s decline by getting particular assets or the whole company at the deflated price.
Is Sun Microsystems a good strategic fit for Oracle? Should Oracle acquire Sun Microsystems?
- as it will allow them to achieve their vision of becoming the Apple of the software industry.
- it will allow the company to deliver high-quality customer products by combining both hardware and software components, hence reducing the consumer setup process.
Continue
It will provide Oracle with the needed expansion.
-This acquisition fits Oracle’s overall strategy which is to improve through acquiring and effectively integrating other companies
Worth of Sun Microsystems and Valuation Approaches
To know how much Sun Microsystems worth, we must find the Stand Alone Value of the company.
The Stand Alone value represents the present value of Sun Microsystem individually before factoring the synergy that would be created when Oracle acquires Sun.
Another method is the value of Sun Microsystem with synergies, which after being acquired by Oracle, must be found. This is done to see whether or not the acquisition was a proper strategic decision or not
Another method of valuing the Sun Microsystem is through the comparative company analysis (CCA). That is done through the thorough assessment of rival and peer businesses of similar size and industry.
Finally, the acquisition price, which is the price that is paid to the target when it is first acquired, is also used as a separate method of valuation. The value of the acquisition price ranges between the values of the stand-alone and the synergies.
USING THE DCF
To be able to find the values of both, the Stand Alone and the synergies, we have decided the best way to do so is by calculating the discounted cash flow (DCF) by using the multiples and the perpetuity growth methods and finding the average of both.
DCF Using Multiples MethodDCF Using Perpetuity Growth MethodIt does not consider long-term growth rate or the economics of business.This method seems inaccurate as the company assumes a certain growth rate will remains the same 2014 onwards (forever) which is unrealistic.It is considered a challenging method to use as it is very difficult to identify truly comparable companies.
USING THE WACC
The weig.
Supply Chains to Admire Analysis for 2019Lora Cecere
This document provides a summary of the 2019 Supply Chains to Admire report, which analyzes 515 public companies across 28 industries to identify top supply chain performers. 23 companies met the criteria for excellence by outperforming peers on metrics like growth, margins, inventory turns and returns. Notable winners include Apple, L'Oreal, and Lockheed Martin. The report finds alignment across functions, a focus on long-term goals, and managing complexity are characteristics of strong supply chain organizations. It provides recommendations on benchmarking, driving value through growth and networks, and maintaining leadership consistency.
The document discusses several megatrends shaping the IT world including growth in emerging markets, increasing amounts of data ("big data"), security threats, analytics, cloud computing, mobility, and social business. It outlines IBM's transformation to a "smarter" approach focused on instrumented, interconnected and intelligent systems. Key technologies discussed include Watson, predictive analytics, expert integrated systems, storage class memory, and mobile/cloud platforms. The trends point to a more data-centric architecture and analytics approaches needed to make sense of unprecedented data volumes and varieties.
This document summarizes the state of open source adoption and use in business intelligence and data warehousing. It finds that open source BI tools are becoming more mature and commonly used, especially for reporting and databases. Surveys show over 30% of companies are using open source BI in production environments, with the most common reasons for evaluating them being cost savings and concerns about vendor lock-in with proprietary solutions. However, open source solutions still have issues with missing features and integration that need to be addressed for broader adoption.
In May 2012, CFO Research conducted a survey among senior finance executives at large U.S. companies to examine their views on the business value of cloud computing, as well as their plans and priorities for adopting cloud-based systems in the years ahead.
Summary report of research on supply chain performance in the pandemic. During COVID-19, supply chains were significantly less agile. Innovative companies did better than laggards. When companies were mature in finite scheduling, sales and operations planning and Available to Promise (ATP), manufacturers were more agile and reponsive.
Paul Young is a CPA and expert in several areas including close, consolidate and reporting cycle, risk management, ESG reporting, data strategy, and emerging technologies. The document discusses key focus areas for CFOs such as automation, remote work, ESG reporting, and upskilling. It also covers challenges for accounting like regulatory filing issues, time to close, pain points in the close cycle, and the move to continuous accounting. New technologies like AI, cloud solutions, and analytics can help address these issues.
Blockchain rewires INDUSTRY PERSPECTIVES-2Keith Bear
This document discusses how blockchain technology could impact financial markets according to a survey of 200 financial institutions. It finds that 14% expect to have blockchains in commercial production by 2017, which it calls "Trailblazers". Trailblazers expect blockchains to reduce "invisible threats" from new competitors and business models. They see the greatest benefits in clearing and settlements, wholesale payments, equity/debt issuance, and reference data. While most institutions don't expect major disruption, Trailblazers see opportunities for new business models in clearing/settlements, payments, and equity/debt markets. Regulations may be delaying disruption in some areas.
This document discusses how "Trailblazers" in the financial markets industry, which make up 14% of respondents in a survey, are early adopters of blockchain technology who expect to have blockchain solutions in commercial production and at scale by 2017. The document outlines key findings about the Trailblazers, including that they prioritize reducing costs through blockchain in areas like wholesale payments, clearing and settlements, and reference data. While most financial institutions do not expect much disruption from blockchain, the Trailblazers see opportunities for new business models in areas like equity and debt issuance.
The document is a 2009 Cloud Computing Trends Report that summarizes the results of a survey of 644 respondents on their views and plans regarding cloud computing. Key findings include that the top three drivers for adopting cloud services are similar across company sizes and primarily include cost savings, uptime/availability, and performance. Security is the top concern for cloud computing providers to overcome. Approximately one third of respondents expect cloud computing to impact their company within 12 months.
This document provides an agenda and summaries for a presentation by Paul Young on the topics of close, consolidate and reporting cycles. The presentation covers Paul's background and areas of expertise. It then outlines trends in accounting for 2022 related to employee expectations, regulatory scrutiny, and inflation. Other topics on the agenda include continuous reporting, accounting trends for 2022, technology improvements for organizations, and challenges for chief financial officers. Risk management, internal audit, artificial intelligence, virtual close cycles, and supply chain issues are also discussed.
There has been a lack of substantive data about the state of open source in the business intelligence and data warehousing market. In this presentation noted industry analyst Mark Madsen will present the results of recent market research on adoption profiles and characteristics for open source BI/DW.
This research surveyed adopters of open source to understand their reasons for adoption and the benefits they experienced. It also captured user demographics to identify who is adopting open source for BI/DW, where they are deploying it, and how it’s being used. Two highly experienced open source BI practitioners, Bruce Belvin (President, Monolith Software Solutions) and Jay Webster (President and COO at Consorte Media) will describe their BI implementations, their criteria and selection methodology, and share best practices.
1. Convergent paths
It all seems to be coming together. Two of the top software vendors have merged, businesses within
firms are starting to share responsibility for op risk management, and, despite a split over scenario
analysis, some expect the market to slowly converge on best practices too. By Alexander Campbell
T
he biggest change at the top of the 2012
The ORR 20 Operational Risk & Regulation software
2012 2011 rankings has nothing to do with shifts in
1 1 Algorithmics/OpenPages/IBM popularity – October last year saw IBM take over
2 4 Chase Cooper Algorithmics in a $380 million deal and begin the
process of merging the company with OpenPages,
3 2 SAS
which it bought in September 2010. Algorithmics and
4 6 Oracle
OpenPages were overall first and third, respectively,
5 7 BWise in last year’s rankings (www.risk.net/2070104); this
6 – MetricStream year the merged company, listed in our rankings as
7 12 RiskBusiness Algorithmics/OpenPages/IBM, keeps Algorithmics’
8 14 Infosys first place, putting the Toronto and London-based
company at the top for the fourth year in a row. Out
9 5 Wolters Kluwer Financial Services/
ARC Logics of our five individual categories, the company came
10 8 Avanon
top in three – scenario analysis, loss data collection,
and regulatory and economic capital modelling – and
11 13 Optial
picked up second place both in the risk control and
12 10 Methodware self-assessment (RCSA) and key risk indicator (KRI)
13 20 BPS Resolver categories.The merger comes as prospects for the
14 9 Cura industry seem to be brighter than they have been in
15 – Thomson Reuters several years.
16 15 Mega
A survey by ORR’s sister magazine Risk in 2011
found that 60% of financial institutions expected
17 17 List Group
to increase IT spending this year; 56% thought the
18 16 EVM Tech increase would be more than 10% from 2011, and “The old view that the risk
19 – Infogix 8% expected to spend 50% more on IT in 2012 management function is the
20 – Check Point than in 2011 (www.risk.net/2124365). And a survey conscience of the company is dying –
conducted by UK consultancy Chartis Research
predicted a steady industry-wide 10% increase in risk
it’s a job that can’t be properly done by
management technology, reaching $21 billion this just a small group, it has to be out with
year and $23 billion in 2013. the business lines”
Second place in the overall rankings went to John Kiddy, Chase Cooper
1 www.chasecooper.com
2. Kiddy says. “Part of that was all the knowledge
risk And control Key Risk indicators transfer – we can provide consulting and run
self-assessment training courses, as well as providing the software.
2012 2011 2012 2011 The more of that kind of guarantee we can give the
1 2 Chase Cooper 1 4 Chase Cooper better – we don’t just sell the software and leave. In
general, we have seen huge interest from emerging
2 3 Algorithmics/OpenPages/IBM 2 1 Algorithmics/OpenPages/IBM
markets. Emerging markets are a massive growth
3 6 BWise 3 3 SAS
area, which might surprise some people.”
4 4 SAS 4 6 BWise But he also sees a real change in attitude on the
5 7 Oracle 5 7 Oracle part of customers around the world. “After Lehman
6 – MetricStream 6 – MetricStream Brothers there was definitely a slowdown – since
7 9 Methodware 7 – BPS Resolver then there’s been a change in the spending pattern.
Over the past year, it seems, people have been
8 5 Wolters Kluwer Financial Services/ 8 10 RiskBusiness
ARC Logics shying away from big-ticket spending. When they
9 5 Wolters Kluwer Financial Services/
9 – RiskBusiness ARC Logics
spend they want guaranteed results. There is much
more caution now, and zero appetite for any risk of
10 – Infosys 10 9 Methodware
project failure.”
One result of customers’ new caution about large
software projects, Kiddy believes, is that sales of
Loss Data collection scenario analysis software alone are becoming rarer – increasingly the
2012 2011 2012 2011 software sale is only part of a package that includes
1 1 Algorithmics/OpenPages/IBM 1 1 Algorithmics/OpenPages/IBM training and consulting services. This is no bad
2 4 Chase Cooper 2 4 Chase Cooper thing from the vendor’s point of view, of course – it
3 3 SAS 3 2 SAS
generally means a stream of revenue lasting several
years, and a closer relationship with the customer.
4 6 Oracle 4 5 Oracle
And providing services alongside software has tipped
5 7 BWise 5 7 BWise the balance in Chase Cooper’s favour in a few recent
6 – MetricStream 6 – MetricStream competitions, Kiddy says: “We are seeing SME
7 5 Wolters Kluwer Financial Services/ 7 – Infosys services more and more as part of the software sale.
ARC Logics On the big wins this year, people are not buying from
8 6 Wolters Kluwer Financial Services/
8 – Infosys ARC Logics us just for the software.”
9 9 Methodware 9 9 Avanon Overhauling and replacing operational risk
10 – RiskBusiness 10 – Methodware software that is now out of date or fragile has been
a big feature of 2011 for Chase Cooper. “In terms
of supplying the core of the system, the demand is
London-based software and services provider that software spending has largely recovered from the coming from people who purchased our system years
Chase Cooper, which took first place in the KRI freeze it suffered at the peak of the crisis in 2008– ago and want to expand, or who have their own
functionality and RCSA categories, and second places 2009. Kiddy is particularly optimistic about the systems and want to change – for example, one that’s
in scenario analysis, loss data and capital modelling – prospects of further sales to emerging-market banks based on [Microsoft] Excel and now creaks rather
up from fourth place overall in 2011 and fifth place in Africa and east Asia. badly,” says Kiddy. “I am constantly surprised how
in 2010. “One of our biggest deals recently was in west many people have been getting by for years with
Chase Cooper’s chief executive, John Kiddy, agrees Africa, which got us into another 35 countries,” systems based on Excel.”
Reprinted from April 2012 2
3. But though survey after survey has found regulatory over calculation methods for operational risk capital
change, including demands for better data reporting,
Economic regulatory under the Basel II capital adequacy rules’ advanced
to be at the top of the worry list for operational capital modelling measurement approach (AMA). As previously
risk managers, Kiddy says this doesn’t seem to have 2012 2011 reported in OpRisk, regulators in the UK, Australia
affected the software market so far. “It’s something 1 2 Algorithmics/OpenPages/IBM and a few other AMA jurisdictions have encouraged
that’s talked about in the technical press, but it has 2 6 Chase Cooper firms to calculate their regulatory capital based largely
not affected us at the moment. However, there’s on the output from scenario analysis. Meanwhile,
3 1 SAS
always a lag between what the people who make the others, led by the US and Germany, favour the use
4 3 Oracle
rules think and what people on the ground are doing, of a loss-distribution approach based almost entirely
so maybe we’ll see that coming through over the next 5 8 BWise on internal and external data. US regulators have said
year or two. Our software can be configured at the 6 – MetricStream specifically that scenarios cannot be used to initially
front end, so they wouldn’t necessarily have to come 7 – Infosys model op risk capital, only to modify the capital figure
to us to ask for additional reporting.” 8 7 Avanon afterwards (www.risk.net/ 2155321).
This can mean demand for closer and more Kiddy comes down firmly on the side of scenario
9 5 Wolters Kluwer Financial Services/
continuous operational oversight, Kiddy points ARC Logics analysis. “We are seeing more and more interest in
out. “The idea of continuous control monitoring of, that. One thing we really believe in is data mining
10 – Optial
for example, trading systems and KRIs is definitely of all the intellectual capital in the company. We
coming – it’s one of our plans for this year.” really believe the industry has taken a wrong turn
In general, regulatory authorities are taking much in that respect – only looking at hard data, and
less on trust when it comes to operational risk Kiddy comments that the financial industry has thinking you can obtain an accurate distribution,
oversight. gone beyond the point of no return in decentralising especially the right-hand side of the distribution,
But meeting the changing business demands operational risk. “The old view that the risk just by using loss data. We think that’s doomed to
has also meant designing software to cater for management function is the conscience of the fail. The Bayesian approach, where you effectively
another trend in the operational risk management company is dying – it’s a job that can’t be properly model the distribution using people’s opinions as
area – the drive to make operational risk awareness, done by just a small group, it has to be out with the well, that’s the way forward, and we have tools for
measurement and management part of the day-to- business lines. This has been a big trend in the past that. Unfortunately people have become mesmerised
day running of the business (www.risk.net/2131882). 12 months. A lot of sales are existing clients wanting by the capital charge calculation as opposed to the
Getting rid of the model in which operational extra licences. And it’s difficult to get risk out to the business case for modelling – we are pushing the
risk is the responsibility of a small centralised cell, business lines with, for example, a system based on idea that the op risk toolkit has to include modelling
and moving instead to one that involves business Excel, because it’s inherently centralised. There is no using all the data you get, including RCSA data.”
heads and desk heads, has obvious advantages for audit trail, no way to lock it down against changes. Chase Cooper has seen growing demand for
software providers – it means a customer no longer In business terms, it means extra training courses modelling tools based on RCSA data as well, with
buys a handful of software licences, but several as well.” 50% of new sales now including a modelling tool
thousand, and in many cases similar-sized training But another less welcome feature of the market that uses RCSA information as the basis of Monte
and education packages. is the continuing disagreement between regulators Carlo simulation for sensitivity analysis. ■
For more information, please contact
enquiries@chasecooper.com
www.chasecooper.com www.dionglobal.com
3 www.chasecooper.com