Milco faces declining revenues due to cuts in defense spending by governments. To sustain profits, Milco must develop new markets or products. Two opportunities are expanding into emerging markets for existing products and developing new aerospace equipment. MRO IT systems and services show growth potential and increasing profits. However, military facility construction loses money and its market is stagnant, so Milco should consider selling this business unit. Overall, Milco needs diversification through new markets and products to maintain its position as defense spending declines.
The document analyzes Milco's financial performance and competitive position in the aerospace and defense industry. It finds that Milco has higher profitability measures than peers. It recommends that Milco sell its unprofitable Military Facility Construction segment. It also suggests Milco expand its profitable MRO business through acquisition and expand into new international markets.
This document discusses investment opportunities in the Indian equity markets. It notes that corporate earnings are poised to pick up pace over the next few years, which could provide many opportunities. There is typically performance divergence across different sectors and stocks within sectors. A diversified portfolio selecting the best ideas across sectors and market caps could generate outsized returns. It then introduces the DSP Equity Opportunities Fund, an actively managed large and mid cap fund that aims to take advantage of opportunities by having a high conviction portfolio of 40-60 stocks across sectors.
Market Research Report : Mobile Accessories Market in India 2013 Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The new report, ‘Mobile Accessories Market in India’, states that India holds immense opportunities for mobile accessory products due to enormous number of mobile device users and rapid growth in adoption of smartphones and tablets. Continual decline of prices of mobile devices is primarily aiding the growth in smartphone and tablet market penetration. Mobile accessories complement the mobile devices or enhance their usage and features. With the elevating popularity of smartphones and other mobile devices, there is significant demand for mobile accessories from consumers across India.
Rise in disposable income has revolutionized consumers’ buying and spending trend, especially in the urban areas. Mobile device adoption amongst youth population in the country and their spending pattern provide strong stimulus for growth in adoption. Online retailing plays a big part in this growth as well. It offers the convenience of cash-on-delivery payment option and lower price offers for various products as compared to physical stores.
Marketing IT amid Global Crisis - An strategic perspectiveRavi Shankar
The document discusses the global economic crisis and its impact on various economies and industries. It analyzes macroeconomic indicators and forecasts for the US, European, Indian and Chinese economies. Furthermore, it examines the effects of the economic downturn on the global IT industry and spending patterns, as well as strategies for companies to optimize their technology costs during this period.
The document provides an overview and analysis of Beijing Capital International Airport (BCIA) in China. It discusses BCIA's rapid growth over the past decade, financial performance, operations, and challenges. Key points include:
- BCIA is one of the busiest airports in the world, handling over 65 million passengers in 2009.
- It added a new large terminal in 2008 but this increased costs and caused profits to drop sharply that year.
- BCIA relies more on aeronautical revenue than non-aeronautical revenue compared to other major airports.
- Staff productivity and delays under 30 minutes could be improved at BCIA according to some metrics and rankings.
Budget 2016-expectations-an insight into the defence sectorGaurav Mehndiratta
Tata came out publicly against airlines lobbying for rule that bars carriers from starting int'l flights till they have been flying for 5 yrs and have 20 planes.
◾ DGCA likely to come out with fresh guidelines on block hours
◾ Let AirAsia, Vistara serve India first: SpiceJet's Ajay Singh to Ratan Tata
◾ Most Read Most Shared Most Commented
The document discusses expectations for incentives and concessions in the upcoming Indian Union Budget of 2016 relating to the defence sector. It suggests fiscal incentives like tax deductions, service tax exemptions, and deemed exporter status for suppliers. It also recommends increasing the FDI limit and liberalizing regulations to attract foreign investment and
- Mahindra & Mahindra reported a 14.2% decline in net profit for Q3FY16 to Rs807.9 cr due to one-time costs, though operating income grew 16.8% to Rs11,008 cr, in line with estimates.
- Revenue growth was driven by a 23.9% rise in the automotive segment, while the farm equipment segment saw sluggish 4.4% growth.
- New model launches like KUV100 and TUV300 are performing well, with KUV100 receiving 350 orders per day and an 18,000-vehicle order backlog.
The document discusses the unmanned aerial vehicle (UAV/drone) market. It notes that UAVs are used commercially and for defense purposes. With advancements in technology, the commercial use of drones in areas like industrial automation, agriculture, and media is growing. This is leading to the establishment of niche drone manufacturers and opportunities in equipment leasing and maintenance. The global UAV market was estimated at $5.5 billion in 2015, with 90% from new equipment sales and 10% from leasing and maintenance.
The document analyzes Milco's financial performance and competitive position in the aerospace and defense industry. It finds that Milco has higher profitability measures than peers. It recommends that Milco sell its unprofitable Military Facility Construction segment. It also suggests Milco expand its profitable MRO business through acquisition and expand into new international markets.
This document discusses investment opportunities in the Indian equity markets. It notes that corporate earnings are poised to pick up pace over the next few years, which could provide many opportunities. There is typically performance divergence across different sectors and stocks within sectors. A diversified portfolio selecting the best ideas across sectors and market caps could generate outsized returns. It then introduces the DSP Equity Opportunities Fund, an actively managed large and mid cap fund that aims to take advantage of opportunities by having a high conviction portfolio of 40-60 stocks across sectors.
Market Research Report : Mobile Accessories Market in India 2013 Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The new report, ‘Mobile Accessories Market in India’, states that India holds immense opportunities for mobile accessory products due to enormous number of mobile device users and rapid growth in adoption of smartphones and tablets. Continual decline of prices of mobile devices is primarily aiding the growth in smartphone and tablet market penetration. Mobile accessories complement the mobile devices or enhance their usage and features. With the elevating popularity of smartphones and other mobile devices, there is significant demand for mobile accessories from consumers across India.
Rise in disposable income has revolutionized consumers’ buying and spending trend, especially in the urban areas. Mobile device adoption amongst youth population in the country and their spending pattern provide strong stimulus for growth in adoption. Online retailing plays a big part in this growth as well. It offers the convenience of cash-on-delivery payment option and lower price offers for various products as compared to physical stores.
Marketing IT amid Global Crisis - An strategic perspectiveRavi Shankar
The document discusses the global economic crisis and its impact on various economies and industries. It analyzes macroeconomic indicators and forecasts for the US, European, Indian and Chinese economies. Furthermore, it examines the effects of the economic downturn on the global IT industry and spending patterns, as well as strategies for companies to optimize their technology costs during this period.
The document provides an overview and analysis of Beijing Capital International Airport (BCIA) in China. It discusses BCIA's rapid growth over the past decade, financial performance, operations, and challenges. Key points include:
- BCIA is one of the busiest airports in the world, handling over 65 million passengers in 2009.
- It added a new large terminal in 2008 but this increased costs and caused profits to drop sharply that year.
- BCIA relies more on aeronautical revenue than non-aeronautical revenue compared to other major airports.
- Staff productivity and delays under 30 minutes could be improved at BCIA according to some metrics and rankings.
Budget 2016-expectations-an insight into the defence sectorGaurav Mehndiratta
Tata came out publicly against airlines lobbying for rule that bars carriers from starting int'l flights till they have been flying for 5 yrs and have 20 planes.
◾ DGCA likely to come out with fresh guidelines on block hours
◾ Let AirAsia, Vistara serve India first: SpiceJet's Ajay Singh to Ratan Tata
◾ Most Read Most Shared Most Commented
The document discusses expectations for incentives and concessions in the upcoming Indian Union Budget of 2016 relating to the defence sector. It suggests fiscal incentives like tax deductions, service tax exemptions, and deemed exporter status for suppliers. It also recommends increasing the FDI limit and liberalizing regulations to attract foreign investment and
- Mahindra & Mahindra reported a 14.2% decline in net profit for Q3FY16 to Rs807.9 cr due to one-time costs, though operating income grew 16.8% to Rs11,008 cr, in line with estimates.
- Revenue growth was driven by a 23.9% rise in the automotive segment, while the farm equipment segment saw sluggish 4.4% growth.
- New model launches like KUV100 and TUV300 are performing well, with KUV100 receiving 350 orders per day and an 18,000-vehicle order backlog.
The document discusses the unmanned aerial vehicle (UAV/drone) market. It notes that UAVs are used commercially and for defense purposes. With advancements in technology, the commercial use of drones in areas like industrial automation, agriculture, and media is growing. This is leading to the establishment of niche drone manufacturers and opportunities in equipment leasing and maintenance. The global UAV market was estimated at $5.5 billion in 2015, with 90% from new equipment sales and 10% from leasing and maintenance.
Final CFA Challenge Trinity University Team SubmissionEmilio Vernaza
1) The document analyzes Southwest Airlines (ticker: LUV) and recommends it as a buy. LUV has maintained low costs through operating a single aircraft type and point-to-point routes.
2) It has grown to be the largest US carrier by passengers while continuing to demonstrate low costs, though its cost advantage over competitors is decreasing. LUV has had 43 consecutive years of profitability.
3) Recent restrictions lifts and acquisitions like AirTran have expanded LUV's scope of operations and potential for market share growth domestically and internationally. However, international operations remain a small portion of its business currently.
Fellowship Investments CFA Research ChallengeRoland Smith
The document summarizes an analysis of NIC Inc. (EGOV), which provides eGovernment services to state and local governments. Key points include:
- A sell recommendation is issued with a $16 target price, representing potential downside of 2.8%.
- Growth opportunities are diminishing at the state level as some states choose in-house solutions or award contracts to competitors.
- The largest contract with Texas represents 22% of revenue and faces increased competition.
- The federal market is important for future growth but remains unproven for EGOV given the size of competitors already involved.
Tata Motors is an Indian automotive conglomerate that owns Jaguar Land Rover. It is the 4th largest truck manufacturer and 2nd largest bus manufacturer globally. While it has a large presence in India, most of its valuation comes from Jaguar Land Rover. Upcoming new luxury SUV models from Jaguar Land Rover are expected to drive significant sales and profit growth. Despite a recent slowdown in China, long term demand for luxury vehicles in China and other key markets remains strong. Tata Motors trades at a discount to its peers and has substantial upside according to a conservative financial model.
Market analysis and knowledgebase: A study on indian non- life insurance and...HarshVardhan1
In 2009, I was passionately researching establishing a company dedicated to providing an entire range of outsourced services, to the Automobile and Non-Life Insurance sector. The research was an amalgamation of studies conducted across the world (includes India). 6 years later a lot of this still good. The 2nd part is a 'Step By Step' on establishing the business process. If anyone requires the same please feel free to revert.
The document analyzes Triveni Turbines, an Indian electrical equipment company. It summarizes key financial details like revenue growth of 13% and EPS growth of 21.99% over the past 3-5 years. An DCF valuation of Triveni Turbines is then presented, estimating the company's value per share at Rs. 17.758 based on a projected revenue growth rate of 2.59%, cost of equity of 5859.60 million, and terminal value of Rs. 41501.60 million. Overall the document conducts an industry, company and financial analysis of Triveni Turbines to evaluate its performance and present a DCF valuation.
The document provides an overview of the IT and ITES sector in India from an economic perspective. It discusses key aspects of the sector such as its economic activity and contribution to GDP, industry landscape, geographical distribution, and challenges. The IT and ITES sector is a major contributor to India's economy, accounting for over 5% of GDP and employing millions of workers. While the sector has grown significantly in recent decades, it faces challenges from increasing global competition and costs that threaten its continued growth.
Enabling Indian manufacturing MSMEs for global competitivenessIET India
This document discusses opportunities for the MSME sector in India in the post-COVID era. It notes that COVID-19 has disrupted global supply chains and more companies are looking to India for manufacturing. However, for Indian MSMEs to capitalize, they need to adopt new business models and technologies. The document outlines challenges MSMEs face related to quality, supply chains, skills, and recommends solutions like digital platforms, IoT, cloud computing and more to help MSMEs become more efficient, flexible and globally competitive. Government support through policies improving the business environment are also encouraged to help MSMEs drive growth and employment in India.
This document summarizes statistics on global merger control and competition enforcement from 2015-2019. It finds that most jurisdictions have mandatory pre-merger notification regimes. Over this period, there were over 30,000 merger notifications but fewer than 2,000 prohibition decisions. Merger control budgets increased for most jurisdictions but fines increased more sharply, in some cases exceeding agency budgets by hundreds of times. Common blocked sectors were retail, technology, and transportation. Most decisions were clearances while clearances with remedies and prohibitions each made up under 7% of total decisions.
Panorama sector, european pharmaceutical companies is austerity fatalJaime Cubillo Fleming
This document provides an overview and risk assessment of sectors in three regions (North America, Western Europe, and Emerging Asia) by Coface economists. Some key points:
- Coface is upgrading its risk assessments for the chemicals, transportation, and textile-clothing sectors in North America due to improvements in the US economy, falling oil prices, and gains in competitiveness.
- In Western Europe, manufacturing activity remains weak and the economic recovery is sluggish, keeping risk levels high for most sectors.
- In Emerging Asia, sectors linked to infrastructure in China continue to suffer from overcapacity while consumption-oriented sectors benefit from rising middle classes.
This presentation by Paulo Burnier (OECD Competition Expert) was delivered during a workshop on mergers held in the framework of the 2021 Virtual African Competition Forum on 29 June 2021.
The United Arab Emirates (UAE) is a rapidly developing economy with an approximate population of 8 million. Its GDP was estimated at US$390bn in 2013, making it the 29th largest economy in the world and the second largest in the Middle East. Its GDP per capita is approximately US$43,000, the 19th highest globally.
- Revenue for AT&S was stable at €222.7 million for the quarter, though earnings declined as expected due to market factors and investments in strategic expansion. EBITDA was €34.9 million, down 32.9%.
- Demand was weaker in the Mobile Devices, Automotive and Industrial segments, leading to underutilization of production capacity. The IC Substrates and Medical & Healthcare segments saw sales increases.
- AT&S initiated an investment project of up to €1 billion to significantly increase IC substrate capacity, with production starting in 2021. This is expected to double revenue to €2 billion in the next 5 years and improve margins long-term.
The document summarizes the ASEAN automotive market, focusing on Thailand, Malaysia, and Indonesia. It states that combined auto sales in ASEAN's six main markets declined 10.2% in 2009 but some economies increased, and sales are expected to exceed 2 million units in 2010. Thailand has become a major regional production and export hub for vehicles, particularly pickup trucks. The auto industry is a key part of Thailand's economy, and production and exports are expected to increase in 2010 despite declines in 2009.
Record high earnings to propel stock markets to record high levelsFundsupermart.co.in
The document provides earnings estimates and outlook for various stock markets and regions globally from 2010 to 2012. It shows that consensus earnings are forecast to hit record highs in 2010-2012 for most markets as the global economy recovers. While concerns have been expressed about the economy, the document argues stocks will eventually refocus on strong corporate earnings fundamentals. Key points made include earnings growth estimates, sectors expected to see fastest/slowest growth, and target levels for some market indexes based on estimated 2012 earnings and price-earnings ratios.
SWOT Analysis Covid-19 Impact on Indian Automotive IndustryRahman A
SWOT Analysis Post Covid-19 Impact on Indian Auto Industry.Automobiles represent freedom and economic growth. Automobiles allow people to live, work and travel in ways that were unimaginable a century ago. Automobiles provides access to markets, to doctors, to jobs. Nearly every automobile trip ends with either an economic transaction or some other benefit to the quality of life
The Frontier Markets Index substantially outperformed actively managed frontier funds in the first half of 2014. This was largely due to dramatic gains in the UAE and Qatar markets as they were upgraded to emerging market status by MSCI. Specifically, three companies concentrated in the Frontier Markets Index accounted for over 700 basis points of the 800 basis point performance advantage of the index relative to top active managers. The unique structure and timing of the rally in these two markets presents implications for how managers and allocators should evaluate performance in this environment.
HBR Case: Ethiopia: An Emerging Market Opportunity?Kristian Moeller
The Ethiopia: An Emerging Market Opportunity? case centers on the potential and challenges of entering an emerging market. It provides a brief overview of the Ethiopian market, market reforms and policies, and the business environment faced by foreign companies. Three multinational businesses, CareCo, ShoeCo, and MedCo, must decide whether and how to enter the Ethiopian market. Students are asked to make a recommendation for each company based on the attractiveness of the market, the factors that matter most for success, and an assessment of what applies to the companies.
- Three multinational companies, ShoeCo, CareCo, and MedCo are considering entering the Ethiopian market.
- The document provides background on Ethiopia's economy, market reforms, industries, and business environment.
- It analyzes each company's financial projections, strengths/weaknesses, and recommends the best market entry strategy for each as either a local agent, licensing, joint venture, or subsidiary.
Coronavirus Impact Assessment And Mitigation Strategies In Automobile Industr...SlideTeam
Understanding the impact of coronavirus over various sectors and industry is a crucial part of developing a mitigation strategy for multiple risks. Initially this presentation highlights the overview of the impact of COVID 19 over the entire automobile industry, as it displays key stats such as 15 percent decline in sales of automobile, decrease in global GDP in 1 percent etc. it also highlights the key challenges faced by automobile sector and the optimistic, realistic and pessimistic approach for the recovery of the automobile sector. Once the overview is analyzed the key risks that may affect the automobile sector are carefully studied these risk can be effects on sale and manufacturing due to social distancing, the lower employee productivity due to COVID, the stress in the supply chain sector due to factory closures in China, the impact of recession, unemployment and investment pullback on the economy. Based on carefully analysis of the risks, mitigation strategies to minimize the impact of COVID these strategies can be developed such as risk assessment matrix, developing a business contingency plan, mitigation strategy for OEMs etc. In the end various policies for minimizing risk within the origination and a survey for developing maturity model is taken and implementation plan is developed. https://bit.ly/30wOrGb
Milco should focus on MRO and expand to new geographies. Specifically, Milco should:
- Grow its MRO business globally as the industry is growing and Milco has a large market share.
- Maintain its military flight simulator business as it is Milco's core competency.
- Expand its military facility construction business into new markets like South Asia and Central Africa while exiting the saturated US market.
The document provides an analysis of MILCO's business case challenges. It analyzes MILCO's financial health, product portfolio, and competition. For the product portfolio, it uses a GE-McKinsey matrix to evaluate products based on industry attractiveness and business strength. It finds that MILCO should divest its military facility construction business and invest in growing its military flight simulation businesses. It also recommends that MILCO look for partnerships and acquisitions to expand into new markets and products.
Final CFA Challenge Trinity University Team SubmissionEmilio Vernaza
1) The document analyzes Southwest Airlines (ticker: LUV) and recommends it as a buy. LUV has maintained low costs through operating a single aircraft type and point-to-point routes.
2) It has grown to be the largest US carrier by passengers while continuing to demonstrate low costs, though its cost advantage over competitors is decreasing. LUV has had 43 consecutive years of profitability.
3) Recent restrictions lifts and acquisitions like AirTran have expanded LUV's scope of operations and potential for market share growth domestically and internationally. However, international operations remain a small portion of its business currently.
Fellowship Investments CFA Research ChallengeRoland Smith
The document summarizes an analysis of NIC Inc. (EGOV), which provides eGovernment services to state and local governments. Key points include:
- A sell recommendation is issued with a $16 target price, representing potential downside of 2.8%.
- Growth opportunities are diminishing at the state level as some states choose in-house solutions or award contracts to competitors.
- The largest contract with Texas represents 22% of revenue and faces increased competition.
- The federal market is important for future growth but remains unproven for EGOV given the size of competitors already involved.
Tata Motors is an Indian automotive conglomerate that owns Jaguar Land Rover. It is the 4th largest truck manufacturer and 2nd largest bus manufacturer globally. While it has a large presence in India, most of its valuation comes from Jaguar Land Rover. Upcoming new luxury SUV models from Jaguar Land Rover are expected to drive significant sales and profit growth. Despite a recent slowdown in China, long term demand for luxury vehicles in China and other key markets remains strong. Tata Motors trades at a discount to its peers and has substantial upside according to a conservative financial model.
Market analysis and knowledgebase: A study on indian non- life insurance and...HarshVardhan1
In 2009, I was passionately researching establishing a company dedicated to providing an entire range of outsourced services, to the Automobile and Non-Life Insurance sector. The research was an amalgamation of studies conducted across the world (includes India). 6 years later a lot of this still good. The 2nd part is a 'Step By Step' on establishing the business process. If anyone requires the same please feel free to revert.
The document analyzes Triveni Turbines, an Indian electrical equipment company. It summarizes key financial details like revenue growth of 13% and EPS growth of 21.99% over the past 3-5 years. An DCF valuation of Triveni Turbines is then presented, estimating the company's value per share at Rs. 17.758 based on a projected revenue growth rate of 2.59%, cost of equity of 5859.60 million, and terminal value of Rs. 41501.60 million. Overall the document conducts an industry, company and financial analysis of Triveni Turbines to evaluate its performance and present a DCF valuation.
The document provides an overview of the IT and ITES sector in India from an economic perspective. It discusses key aspects of the sector such as its economic activity and contribution to GDP, industry landscape, geographical distribution, and challenges. The IT and ITES sector is a major contributor to India's economy, accounting for over 5% of GDP and employing millions of workers. While the sector has grown significantly in recent decades, it faces challenges from increasing global competition and costs that threaten its continued growth.
Enabling Indian manufacturing MSMEs for global competitivenessIET India
This document discusses opportunities for the MSME sector in India in the post-COVID era. It notes that COVID-19 has disrupted global supply chains and more companies are looking to India for manufacturing. However, for Indian MSMEs to capitalize, they need to adopt new business models and technologies. The document outlines challenges MSMEs face related to quality, supply chains, skills, and recommends solutions like digital platforms, IoT, cloud computing and more to help MSMEs become more efficient, flexible and globally competitive. Government support through policies improving the business environment are also encouraged to help MSMEs drive growth and employment in India.
This document summarizes statistics on global merger control and competition enforcement from 2015-2019. It finds that most jurisdictions have mandatory pre-merger notification regimes. Over this period, there were over 30,000 merger notifications but fewer than 2,000 prohibition decisions. Merger control budgets increased for most jurisdictions but fines increased more sharply, in some cases exceeding agency budgets by hundreds of times. Common blocked sectors were retail, technology, and transportation. Most decisions were clearances while clearances with remedies and prohibitions each made up under 7% of total decisions.
Panorama sector, european pharmaceutical companies is austerity fatalJaime Cubillo Fleming
This document provides an overview and risk assessment of sectors in three regions (North America, Western Europe, and Emerging Asia) by Coface economists. Some key points:
- Coface is upgrading its risk assessments for the chemicals, transportation, and textile-clothing sectors in North America due to improvements in the US economy, falling oil prices, and gains in competitiveness.
- In Western Europe, manufacturing activity remains weak and the economic recovery is sluggish, keeping risk levels high for most sectors.
- In Emerging Asia, sectors linked to infrastructure in China continue to suffer from overcapacity while consumption-oriented sectors benefit from rising middle classes.
This presentation by Paulo Burnier (OECD Competition Expert) was delivered during a workshop on mergers held in the framework of the 2021 Virtual African Competition Forum on 29 June 2021.
The United Arab Emirates (UAE) is a rapidly developing economy with an approximate population of 8 million. Its GDP was estimated at US$390bn in 2013, making it the 29th largest economy in the world and the second largest in the Middle East. Its GDP per capita is approximately US$43,000, the 19th highest globally.
- Revenue for AT&S was stable at €222.7 million for the quarter, though earnings declined as expected due to market factors and investments in strategic expansion. EBITDA was €34.9 million, down 32.9%.
- Demand was weaker in the Mobile Devices, Automotive and Industrial segments, leading to underutilization of production capacity. The IC Substrates and Medical & Healthcare segments saw sales increases.
- AT&S initiated an investment project of up to €1 billion to significantly increase IC substrate capacity, with production starting in 2021. This is expected to double revenue to €2 billion in the next 5 years and improve margins long-term.
The document summarizes the ASEAN automotive market, focusing on Thailand, Malaysia, and Indonesia. It states that combined auto sales in ASEAN's six main markets declined 10.2% in 2009 but some economies increased, and sales are expected to exceed 2 million units in 2010. Thailand has become a major regional production and export hub for vehicles, particularly pickup trucks. The auto industry is a key part of Thailand's economy, and production and exports are expected to increase in 2010 despite declines in 2009.
Record high earnings to propel stock markets to record high levelsFundsupermart.co.in
The document provides earnings estimates and outlook for various stock markets and regions globally from 2010 to 2012. It shows that consensus earnings are forecast to hit record highs in 2010-2012 for most markets as the global economy recovers. While concerns have been expressed about the economy, the document argues stocks will eventually refocus on strong corporate earnings fundamentals. Key points made include earnings growth estimates, sectors expected to see fastest/slowest growth, and target levels for some market indexes based on estimated 2012 earnings and price-earnings ratios.
SWOT Analysis Covid-19 Impact on Indian Automotive IndustryRahman A
SWOT Analysis Post Covid-19 Impact on Indian Auto Industry.Automobiles represent freedom and economic growth. Automobiles allow people to live, work and travel in ways that were unimaginable a century ago. Automobiles provides access to markets, to doctors, to jobs. Nearly every automobile trip ends with either an economic transaction or some other benefit to the quality of life
The Frontier Markets Index substantially outperformed actively managed frontier funds in the first half of 2014. This was largely due to dramatic gains in the UAE and Qatar markets as they were upgraded to emerging market status by MSCI. Specifically, three companies concentrated in the Frontier Markets Index accounted for over 700 basis points of the 800 basis point performance advantage of the index relative to top active managers. The unique structure and timing of the rally in these two markets presents implications for how managers and allocators should evaluate performance in this environment.
HBR Case: Ethiopia: An Emerging Market Opportunity?Kristian Moeller
The Ethiopia: An Emerging Market Opportunity? case centers on the potential and challenges of entering an emerging market. It provides a brief overview of the Ethiopian market, market reforms and policies, and the business environment faced by foreign companies. Three multinational businesses, CareCo, ShoeCo, and MedCo, must decide whether and how to enter the Ethiopian market. Students are asked to make a recommendation for each company based on the attractiveness of the market, the factors that matter most for success, and an assessment of what applies to the companies.
- Three multinational companies, ShoeCo, CareCo, and MedCo are considering entering the Ethiopian market.
- The document provides background on Ethiopia's economy, market reforms, industries, and business environment.
- It analyzes each company's financial projections, strengths/weaknesses, and recommends the best market entry strategy for each as either a local agent, licensing, joint venture, or subsidiary.
Coronavirus Impact Assessment And Mitigation Strategies In Automobile Industr...SlideTeam
Understanding the impact of coronavirus over various sectors and industry is a crucial part of developing a mitigation strategy for multiple risks. Initially this presentation highlights the overview of the impact of COVID 19 over the entire automobile industry, as it displays key stats such as 15 percent decline in sales of automobile, decrease in global GDP in 1 percent etc. it also highlights the key challenges faced by automobile sector and the optimistic, realistic and pessimistic approach for the recovery of the automobile sector. Once the overview is analyzed the key risks that may affect the automobile sector are carefully studied these risk can be effects on sale and manufacturing due to social distancing, the lower employee productivity due to COVID, the stress in the supply chain sector due to factory closures in China, the impact of recession, unemployment and investment pullback on the economy. Based on carefully analysis of the risks, mitigation strategies to minimize the impact of COVID these strategies can be developed such as risk assessment matrix, developing a business contingency plan, mitigation strategy for OEMs etc. In the end various policies for minimizing risk within the origination and a survey for developing maturity model is taken and implementation plan is developed. https://bit.ly/30wOrGb
Milco should focus on MRO and expand to new geographies. Specifically, Milco should:
- Grow its MRO business globally as the industry is growing and Milco has a large market share.
- Maintain its military flight simulator business as it is Milco's core competency.
- Expand its military facility construction business into new markets like South Asia and Central Africa while exiting the saturated US market.
The document provides an analysis of MILCO's business case challenges. It analyzes MILCO's financial health, product portfolio, and competition. For the product portfolio, it uses a GE-McKinsey matrix to evaluate products based on industry attractiveness and business strength. It finds that MILCO should divest its military facility construction business and invest in growing its military flight simulation businesses. It also recommends that MILCO look for partnerships and acquisitions to expand into new markets and products.
Milco is analyzing opportunities for international growth. Financial analysis shows increasing profitability. Competitively, Milco has a strong position in military flight simulators and MRO presents an opportunity as a competitor exits. Recommendations include expanding MRO services in Germany, Austria, and expanding military flight simulators in Saudi Arabia and Turkey to capitalize on growing markets.
The document provides an overview of the global drone market including key points:
- The drone market is expected to grow at a CAGR of 15.37% to $47.76 billion by 2025 as commercial adoption increases.
- Enterprise drones are growing faster than consumer drones with hundreds of exemptions granted for commercial use.
- Key applications driving growth include construction, agriculture, energy, entertainment, law enforcement, delivery and other industries like mining and firefighting.
- One company, Autonomous Control Systems Laboratory, provides industrial drone solutions for infrastructure inspection, logistics, and disaster prevention to contribute to the growing drone industry in Japan.
Liberty Seguros is a Colombian insurance company specialized in life, property, and casualty policies. It has performed slightly below the industry average in recent years. The insurance industry in Colombia also performs below the national economic average. Key factors influencing Liberty's competitive position include limited differentiation among competitors, its mix of risks covered, and its financial structure, which affects its return on equity. Significant strategic issues for Liberty include new market entrants as the economy and insurance penetration grow, commoditization of key insurance products, and opportunities to leverage its international presence and brand to target new customer segments and niches.
The document discusses the IDFC Core Equity Fund, a large and mid cap equity fund that invests in both large and mid cap stocks. It aims to provide the steady returns of large caps with the higher growth potential of mid caps. The fund uses a 3-factor model to identify quality stocks with strong cash generation, high returns on capital, and manageable debt levels. Currently, it has a cyclical sector bias and overweight positions in sectors like cement and IT. The fund performance has outpaced benchmarks over the past 1 and 3 years.
IDFC Core Equity Fund is an open-ended equity scheme that invests in both large and mid-cap stocks. The fund aims to provide the steady returns of large caps along with the higher growth potential of mid caps. It uses a 3-factor model to identify quality stocks with strong cash generation, high returns on capital, and manageable debt levels. Currently, the fund focuses on analyzing financial track records, relative value, and sector outlooks. It has a larger allocation to cyclical sectors compared to its benchmark index and is overweight in sectors like cement and information technology.
The document provides an overview of the IT and ITES sector in India from an economic perspective. It discusses key topics such as the sector's contribution to India's GDP and employment, its landscape and growth trends, geographical distribution of exports, and challenges and opportunities around areas like emerging markets, delivery centers, and small/medium enterprises. The sector has grown significantly over the past decade but still faces challenges around competition, talent shortage, and maintaining its cost advantage to continue its strong growth trajectory.
The document discusses certain forward-looking statements regarding Infosys' future growth prospects and financial performance that involve risks and uncertainties. It notes key risks such as execution of business strategy, attracting and retaining talent, transition to hybrid work model, economic uncertainties, and regulatory changes. The document provides Infosys' market position, business segments, and financial highlights. It also outlines the company's strategic priorities such as continuing digital intensity, next generation technologies, people development and sustainability to achieve continued growth.
This document provides an overview of an intelligent automation company. It discusses the company's history, leadership, financial performance, products, markets, growth strategy, and competitive advantages. The company has experienced significant revenue and profitability growth recently and aims to further penetrate existing markets and expand into new sectors through 2020. Risk factors are also noted around forward-looking statements.
Roth presentation jason tienor telkonetAdam Martin
This document provides an overview of an intelligent automation company. It discusses the company's history, leadership, financial performance, products, markets, growth strategy, and competitive advantages. The company has experienced significant revenue and profitability growth recently and aims to further penetrate existing markets and expand into new sectors through 2020. Key factors making it well-positioned for continued expansion include its technological capabilities, growing customer base, profitable financials, and experienced management team.
The global defense industry is expected to see continued declines in revenue in 2013 due to decreased military spending, primarily in the US and Europe. In contrast, the commercial aerospace industry is projected to reach record levels of revenue as airlines update fleets with more fuel efficient aircraft to remain competitive. While defense budgets shrink, commercial aircraft production is forecast to set new records, having achieved its best production year ever in 2012. Globalization is bringing both opportunities and challenges as military and commercial customers increasingly require work to be offset in their home countries.
The global elevator and escalator market was estimated at $63.9 billion in revenues in 2015, with the new equipment market declining 2.3% due to slowdown in China, which contributes over 50% of new equipment sales. However, the maintenance and servicing market continued expanding at 5%. Over the long term, the Chinese market grew at a 15% CAGR between 2005-2015, followed by strong growth in Asia Pacific and MENA regions. The market is projected to grow at a 6% CAGR to $86 billion by 2020, with China, Asia Pacific, and maintenance services outpacing overall growth, while Europe and MENA lag.
The document discusses the performance of Indian equity markets in 2019. It notes that large cap indices saw returns of 2-7% for the year to date, while mid and small cap indices lagged with returns between -10% and -8%. There was significant variance in performance across sectors, with energy, IT, real estate and financials outperforming, while healthcare, materials, utilities and consumer discretionary underperformed. The document also discusses the DSP Focus Fund, a concentrated, multi-cap equity fund that seeks to generate superior returns through high conviction stock picking across sectors.
The document provides details on Curtiss-Wright's 1Q 2018 earnings conference call, including financial results, business outlook, and guidance. Key points:
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Analog Devices is acquiring Linear Technologies to increase revenue from $3.43B to $5.26B and improve operating margins. The acquisition is expected to be accretive and potentially generate cost savings of up to 5% of revenue. This buy recommendation is based on the upside potential from synergies of the acquisition. However, if the acquisition fails to be completed, the upside potential would decrease and the recommendation would change to a hold. The report provides an analysis of Analog Devices' business segments, revenue sources, and growth drivers.
Recommended Strategies and Long-Term ObjectivesUpon review .docxdanas19
Recommended Strategies and Long-Term Objectives
Upon review of the data provided within the appendices, in conjunction with the substantive strategic analyses noted above, there seems to be a clear strategy for iRobot to take to gain a competitive advantage in the near future. Furthermore, this strategy will ensure the company’s financial security and exponential growth for the next decade. Within three years, iRobot will have fully absorbed the new strategy’s initial costs and will provide substantial increases in net income and cash flows, which in turn will result in impressive financial statements to appeal to investors, as well as improved operating efficiency within the company to allow it to expand to new markets.
iRobot has an increasing number of competitors within its market, and its current market share is relatively small, despite the company’s continual growth over the past several years. The company has put little effort into its marketing campaigns, and has also placed few resources to research and development. However, the recommended strategy for the company will be to use considerable capital in research and development, to create innovative robots designed for the retail industry. Major retail companies, such as Walmart, are beginning to invest in robots to facilitate a great number of tasks, both in physical retail locations, as well as manufacturing and distribution centers. With the commitment from companies such as these to continue integrating robotics into their operations, a new lucrative market is available for iRobot. If the company could develop a robot to facilitate the needs of these retail giants, iRobot could recognize massive profits, and also capitalize on relatively untouched market, quickly grabbing up the majority of the market share.
The suggested strategy is for iRobot to invest $70 million in 2019 in the R & D department, to design and produce a retail-specific robot within 6 months. The company currently has more than enough liquid assets to cover this investment without putting the company in financial stress. Once the robots are developed, iRobot will invest $25 million in a marketing campaign geared specifically for the retail industry, to gain the attention of retailers and supply chain companies worldwide. In 2019, iRobot will purchase 5,000 robots, with the goal of selling 2,500 in the first year. The average cost for such a robot will be around $15,500 per robot for production, while the average sales price that iRobot could charge to retailers is around $50,000 per robot.
For the first year, iRobot will incur and additional $172.5 million in the initial investment and production of the first run of 5,000 robots. However, the company will also recognize an additional $125 million in revenues from the 2,500 robots to be sold in 2019. This will result in a decrease in net income of around 44%, which still nets the company nearly $50 million in net income. Although the first year represents .
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1. BUSINESS CASE CHALLENGE
‘THE MAVERICK’SEASON 3
Team Name: Smart Spiders
Pravin Bokil
Ankit Rote
Srabana Chaudhuri
K. J. Somaiya Institute of Management Studies & Research
2. Executive Summary
The global aerospace defense sector is expected to witness continued decline in revenues
as a result of cuts in defense spending by the governments of various nations, attributed to slowdown
in the economy and the end of prolonged wars in Middle East and other regions. Therefore, the US
government, which has been rigorously involved in such activities in those regions is cutting down their
defense spending since 2011 with 1 % cut in the same year followed by drastic defense spending cuts
of 6% and 5 % in 2012, 2013 respectively. Such cutback by the US government would adversely
impact revenues and profit margins of companies actively participating in the defense and aerospace
industry. Therefore, these companies would have to strive for sustaining their bottom lines in the least
and maintaining market share.
Milco, one of the market leaders in product categories like Military flight simulators(MFS),
Military Flight Simulator Services, MRO IT services and a struggling player in Military Facilities
Construction segment will face similar problems . Being active in the US defense sector only, it
augments Milco’s problems to which there are two possible solutions .Milco would either have to move
into new emerging markets with existing products or develop new aerospace defense equipment on
the whole.
Emerging economies like China , India, Russia are investing huge in modernizing their
national security and defense due to threats and unrest in South East Asian, Middle Eastern region
and these can be considered as prospective markets for future growth of Milco. However, the US
market is still the largest spender in aerospace and defense products and services with a lion share of
41% of the global defense spending.
Apart from the defense sector, the new market for existing product as well as
diversification through new product development in an inevitable move to maintain the market position
for the company like Milco.
3. Income Statement for Milco
Forecasted Income Statement from the year 2015 to 2019 (In Million USD)
Year
2014
(Actual) 2015 2016 2017 2018 2019
Total Revenue $2,005.000 $2,077.680 $2,167.380 $2,244.260 $2,343.400 $2,457.400
Total COGS $1,050.000 $1,091.450 $1,134.550 $1,184.260 $1,235.750 $1,296.000
EBITDA $955.000 $986.230 $1,032.830 $1,060.000 $1,107.650 $1,161.400
Gross Operating Margin 47.63% 47.47% 47.65% 47.23% 47.27% 47.26%
SG&A Expenses(20% of revenues) $401.00 $415.54 $433.48 $448.85 $468.68 $491.48
Net Operating Income $554.000 $570.694 $599.354 $611.148 $638.970 $669.920
Net Operating Margin 27.63% 27.47% 27.65% 27.23% 27.27% 27.26%
Total Depreciation & Amortization $101.00 $106.40 $115.58 $119.36 $123.41 $135.56
EBIT $453.000 $464.294 $483.774 $491.788 $515.560 $534.360
Interest Expenses $76.500 $80.758 $86.230 $91.030 $96.097 $102.891
Profit Before Tax $376.500 $383.536 $397.544 $400.758 $419.463 $431.469
Tax $112.95 $115.06 $119.26 $120.23 $125.84 $129.44
Profit After Tax $263.550 $268.475 $278.280 $280.531 $293.624 $302.029
Profit margin 13.14% 12.92% 12.84% 12.50% 12.53% 12.29%
4. Financial Performance Analysis
Overall
1. Net profit will increase by 3% every year, although the gross profit margin increasing with little higher of 4%
2. Growth in net profit is not enough to meet the expected return on investment of share holders, which would lead
to fall in share prices and eventually the market cap
3. Milco is investing in assets by borrowing money through long term debt as it is not able to generate enough
profits to reinvest in the business
4. One of the major factor behind reduction in net profit margin is increase in interest expenses, having a steep
rise of around 33% in 5 years period with average increase 6% every year
5. Investment in assets inevitably increases the depreciation expenses, which increases by around 35% in the
span of 5 years as against 3% increase in net profits, dampening the Return on Assets (RoA)
6. Interest Coverage Ratio(ICR) will decrease from 5.9 to 5.2 in next 5 years and Debt Service Coverage
Ratio(DSCR) would see a dip from 31% to 28%. Operating the company in the same manner would have
serious repercussions on the credit rating of the company
7. Overall profit margin will go on declining over the period of time if the company does not diversify by investing in
new products to improve its product portfolio as well as new market development
Product-wise
1. Military Facility construction has the negative return of $4 Million in the year 2014, which is eroding the bottom
line of the company
2. Profit margins for Military Flight Simulator will go on reducing as the COGS is increasing at the rate more than
the revenue growth of the product
3. EBIT for MRO IT Systems would increase at higher rate of 8% every year along with the market growth.
Investing in this category to increase the market share would reap good benefits in the long term
4. EBIT for MFS Instruction would remain constant in absolute terms, due to which it will not be a cash cow for the
company for longer period
5. MRO IT System services has a good growth prospective with increasing EBIT at an average of 8% per annum.
It has a potential to increase the share in the company’s revenue with product as well as market development of
markets such as civil aviation industry in emerging economies
5. Milco’s Competitive Position
• Stars: With 35% & 20% of market share MFS Service & Maintenance
and MRO IT System Services, contributes 20% & 11% to net profits
respectively
• Cash Cows: MFS has a negative market growth but highest Return on
Assets (RoA) of 26%. MFS Instruction market is stagnant yet adds 17%
to the revenue. Milco would need to invest in new product as well as new
market development
• Question marks(?): MRO IT System, though a growing market, Milco is
not able to capture the larger market share, with competitors squeezing
the profit margins which reduces ROA to as low as 13%. Milco has two
options, either to invest in these products/services to increase market
share through market penetration or market development, or to divest in
the products/services.
• Dogs: Milco, having core competency in Flight Simulators and MRO IT
Systems could not diversify successfully, in the market of Military Facility
Construction. Moreover the lowest ROA and negative profit margins are
eroding Milco’s bottom line Market share
Marketgrowth
HighLow
High Low
• MFS
Service &
Maintenan
ce
• MRO IT
System
Services
• MRO IT
System
• Military
Facility
Constructio
n
• MFS
• MFS
Instruction
In Million USD
Military Flight
Simulator
MRO IT
System
Military Flight
Simulation
Instruction
Military Flight Simulator
Service/Maintenance
MRO IT
System
Services
Military Facility
Construction
2014 Market $3,000 $3,000 $1,750.00 $1,120.00 $1,150 $125,000
Market Growth Trend Decreasing Increasing No Change Increasing Increasing No Change
Milco's Market share 20.0% 10.2% 20.0% 35.0% 20.0% 0.1%
Milco's Revenue $600.00 $306.00 $350.00 $392.00 $230.00 $125.00
Contribution to Net Profit $78.8400 $40.2084 $45.9900 $51.5088 $30.2220 $16.4250
Contribution in Revenue 30.0% 15.3% 17.5% 19.6% 11.5% 6.2%
Product Asset Value $300.0 $300.0 $300.0 $300.0 $300.0 $500.0
Return on assets (RoA) 26.28% 13.40% 15.33% 17.17% 10.07% 3.29%
6. MRO IT System and Services
• Global Economic slowdown has propelled the cutbacks on
defense budget by country governments, who prefer to maintain,
repair, upgrade and use the same products in aerospace
activities rather than buying new equipment
• MRO IT system and MRO IT System Services have respective
market share of 10% and 20%, contributing to 15% and 11.5% of
the revenue for Milco, with positive market growth in both
product categories
• As given in the data, market growth rate for both these
categories has shown positive trend in 2014-15
• The profit margin would increase in the future with COGS
increasing at decreasing rate relative to revenue forecast
Current competitive position
7. MRO IT System and Services
• Grab the market share from competitor who are exiting from the market
• Focusing on the non users to persuade them to buy MRO IT System from Milco
Market
Penetration
• MRO IT System, are not very sensitive product as compared to arms & weapons,
• Targeting defense service sector of emerging countries such as India, South Africa,
Brazil, Turkey, Israel, Russia etc., would be relatively easier
• Take advantage of regulatory changes such as, allowing FDI in defense,
outsourcing MRO activities in India as well as in South Africa has given rise to
related industries
Market
Development
• MRO IT System for Civil aviation:
• Civil aviation in emerging markets, especially in Asia, is rising steeply with 18% of
growth rate, with this growth rate MRO industry is also on the rise.
• Especially India, UAE and Turkey are taking working hard to increase the market
share in MRO industry by taking an advantage of their geographical location
Product
Development
• India, currently contributes 1%, i.e. $600 Million to the global civil aviation MRO, but
growing at the rate of 14% per annum with expected market size to be $1.8 Billion
by 2020
• There are many service providers in Indian MRO Industry such as Indamer,
Airworks, Max, HAMCO
• Target these companies and position the new product
Diversification
Growth Prospective
8. Military Flight Simulator, Maintenance &
Services and Instruction
Weapon System
Simulator Cost /
Hour
Aircraft Cost /
Hour
CH-47 $256 $1,771
UH-60 $59 $1,448
AH-64 $70 $3,101
• Military Flight Simulator is widely used to train the pilots so as
to save cost of training. The training cost on simulator is 5-
20% of that of training on aircraft
• With chronic defense budget cuts, have increased the use
of flight simulators, flourishing the market of Flight Simulator
and its services
• Apart from Military Flight Simulators, Milco should develop
and introduce a Flight Simulator for Civil aviation
• Civil aviation is growing in terms of passenger traffic as well
as new players are coming into the market. India, China,
Malaysia, Thailand, Singapore are the countries where civil
aviation is on the rise due to flooding of Low Cost
Carriers(LCC)
• With increase in number of aircrafts, the employment of
pilots in the industry would increase which would give rise
to training institutes for pilots.
• This is the new market for Milco to enter into: Go to Market
Strategy
Know the competitors in
the new market
Partnership with
the local vendor
Target the
institutes for
Service offering
Offer the world
class
maintenance
and services
Grab the market
gradually with
Milco’s products
9. Military Facility Construction
Current competitive position
• Milco has the market share of meager 0.1% in
the $125 billion industry.
• The profit margins are very low due to cut-
throat competition in the market with more
than 100 players, hence selling the product
will not be profitable unless the company has
a substantial market share
• IP assets for this product category is valued as
$500 Million ,with amortization of $20 Million
every year as per our calculation
• Milco has earned the revenue of $130 Million
with net profit of around $16 Million in this
product category
• This product category market though huge in
size, it is stagnant with apparently no growth
opportunities. Return on Assets in 2014 is
3.29%, lowest in the all product category as
traded by Milco
Recommendations
• Calculations from the given data reveal that
Milco has made the loss of $ 4 Million in the
year 2014 in this product category
• If Milco sells off this business unit in 2015 , it
would achieve either of the three benefits-
• Reduction in the amortization expenses by $20
Million, thereby increasing the EBIT of the
company by around 7%
• The amount received by selling off the business
could be invested in the new or the existing
product or market developments, so as to improve
the top product segments
• The amount received could be useful to repay the
debt so as to save on the interest costs,
eventually increasing Net Profit
• Otherwise, if the current market share for this
segment is prevalent in the future, with product
asset valued at $500 Million, it would take
around 5.25 years to break even.
10. Appendix
Assumptions
• The forecasting period is of 6 years from the year 2014 to 2019
• Net profit margin is equal for all product and services offered by Milco
• Asset base as well as the asset proportion remains the same for forecasting period
• Assets are increasing with the increase in sales of the products/services with the respective rate of increase
• Long term debt is increasing at the constant rate of 5.56% for the forecasting period
• The company has kept the capital structure same by maintaining debt/equity ratio of 28.8% for making
investments in 2016 and in 2019
• No other investment is made by the company in the forecasting period
• Interested rate on long term borrowing is constant over the forecasting period
• Return on Equity is 25%
• Sales growth rate is assumed to be constant in the respective product categories
References
• http://www.washingtonpost.com/blogs/wonkblog/wp/2013/01/07/everything-chuck-hagel-needs-to-know-
about-the-defense-budget-in-charts/
• http://people.stern.nyu.edu/adamodar/New_Home_Page/datafile/roe.html
• http://csimarket.com/Industry/industry_ManagementEffectiveness.php?ind=201
• http://www.12newsnow.com/story/26200291/need-to-reduce-costs-of-pilot-training-drives-the-global-
commercial-and-military-flight-simulation-market-according-to-new-report-by-global-industry
• http://www.marketwatch.com/story/the-global-military-simulation-and-virtual-training-market-2014-2024-
2014-02-12
• http://online.wsj.com/article/PR-CO-20130122-904850.html