Abstract It is the Internet that has spurred the enormous growth of discount brokerage in the post 1995 period. The Internet is the lifeblood of the discount brokerage and its existence is almost wholly dependent on the ability of the Internet to reach and effectively serve, the armchair global investor. Accordingly, the future shape of the Internet will determine the success or failure of the discount brokerage. To a lesser degree, the discount brokerage will determine the future shape of the Internet, at least in terms of its application to financial services.
Abstract This paper addresses the concept and determinants of present value and the discount factors that affect businesses. The paper presents a two-part case study. Part I addresses a series of discount rate calculation issues. Part II then discusses the writer's analysis of two companies to determine which company would have the lowest discount rates based upon several determinants outlined in the study material.
Table of Contents:
Part I
Part II
From the Paper "Sirius has a massive cost structure - 2006 cash operating expenses (not including depreciation and non-cash compensation) were $414 million. The management's effectiveness was terrible with a negative 20 percent return on assets. The company's Q4 and full year 2006 financial results are mind-blowing. The year-over-year quarterly revenue growths were 141 percent however the net income was a negative $1.1B. Over the past 12 months, the stock price for Sirius Satellite Inc. had a significant change of minus 35 percent. Thus the volatility of the stock is large with a negative change over the past 52 months. Although Sirius Satellite Inc works in a more dynamic industry where the risks are higher, the growth expectations are expected to be higher next year. With Mercedes expediting installation of radios in a high percentage of their cars and the projected merger with XM Radio Inc., the future for Sirius looks better. One of the major risks of management effectiveness has been haunting Sirius for many years. This risk needs serious attention and mitigation steps are required to heal this wound."
Abstract This paper describes in detail discount certificates and bonus certificates. It provides some general information and features of certificates and discusses the engineering and financing of the certificates. The paper then examines the advantages and risks of using these certificates and it then provides a practical example to explain the concept.
Table of Contents:
List of Tables
List of Abbreviations
Introduction
Discount Certificates
General Information
Discounts Caps
Engineering
Advantages and Risks
Example
Key Figures
Interpretations
Explanations
Bonus Certificates
General Information
Bonus
Barrier
Engineering and Finance
Advantages and Risks
Example
Key Figures
Interpretations
Explanations
Summary and Conclusions
From the Paper "Both certificate types are constructed on the basis of an underlying value and some kind of option to finance the mentioned securities as well as benefits. Certificates are sold like share at the stock exchanges in Frankfurt and Stuttgart, as well as through direct trade. Emitter like ABN AMRO sets everyday prices for the products to give liquidity for trade to the investors. There are two different prices offered, the bid and the ask price. The spread in between will finally be the profit for the emitter. Furthermore they make profit through the time value of put options. Offering certificates bears nearly no risk for the emitter. Discount certificates are based on an adverse development that equilibrates any development in the market."
Abstract This paper reviews how Kmart is currently being squeezed by Wal-mart, Target, Kohl's and a host of other discount establishments. The writer explains why the company now risks becoming irrelevant in a discount store world that has moved beyond them. The writer argues that had Kmart taken to heart certain key microeconomic concepts and applied them consistently they could possible have avoided this current state of affairs. These concepts are discussed.
From the Paper "Kmart certainly has its work cut out for itself. But how did it arrive at this state of affairs? Kmart declared bankruptcy in 2002 - the culmination of a number of bad decisions starting in the late 1980's and 1990's. The company had expanded rapidly, seeking to build up "a portfolio of category-dominant chains to complement its core business, the Kmart discount store." (Conrad, Hanson & Hoffman, 2001, p. 2). This strategy appears to have been an attempt to gain economies of scale. However most of these acquisitions had to be sold off as the economies of scale turned to diseconomies. There followed a concerted attempt to reorient the company back to the original discount store strategy."
Abstract This paper evaluates the discount brokerage in terms of Porter's 'Five Forces Analysis. This author reviews job attitudes and job equity for both the manager and broker at a typical discount brokerage firm.
Abstract This paper compares and contrasts the capital asset pricing model (CAPM) and the discounted cash flow (DCF) model in valuing common stock. The paper holds that, because of the complexity and importance of valuing common stock, the above techniques have been devised over time to accomplish this task. It points out that CAPM focuses on inputs to calculate stock prices that are external to the firm while the DCF model focuses on internal factors. Also, CAPM is concerned with growth rate, while DCF is concerned with estimated returns. The paper concludes that both models are important to investors and expanding companies.
From the Paper "For a firm that is expanding, it is difficult to establish a proper growth rate for the DCF. If past growth rates in earnings and dividends have been relatively stable, and if investors appear to be projecting a continuation of past trends, then the growth rate may be based on the firm's historic growth rate. However, if the company's past growth has been abnormally high or low, either because of its own unique situation or because of economic fluctuations, then the growth rate has to be estimated in some other manner."
Abstract This paper discusses private retirement plans and interest rates. The paper contends that private retirement plans will increase in importance for Americans over the coming years as a secondary source of income for retired Americans. The paper assesses that there is no direct relationship between the discount rate and the earnings of a pension plan's investments. However, the paper claims that constant fluctuations in the discount rate set forth by Congress make pension plan confidence uncertain.
Outline
Introduction
History of Discount Rates
Summary
From the Paper "The strength of private retirement plans must be maintained in the upcoming years due to the increasing number of Baby Boomers who will be retiring in the United States. Many retired Americans rely on private pensions and employer-sponsored retirement savings as a secondary source of income in addition to Social Security (Brinner 131). In addition, because the human life expectancy has increased dramatically over recent years, it is very important that policymakers encourage the growth of employer-sponsored retirement plans (Hungerford et al. 13)."
Abstract This research paper assesses whether hotel companies should offer customers a discount by way of compensation for service failure. The study assesses whether offering customers a discount is an effective strategy to ensure their repeat business in spite of having suffered poor service. The study also assesses whether it is in the financial interests of the company to offer such compensation. This is done by evaluating whether the company is able to generate the cost of the discount back from the customer through their repeated business.
Outline:
Introduction
Background
Purpose of the Study
Importance of the Study
Hypothesis
Outline Methodology
Sources of Information
Reliability and Validity of Data
Limitations of the Study
Summary of Research Questions
Literature Review
Methodology
Results
Discussion
From the Paper "The study is important in determining the strategy which the hotel industry should pursue in regards to offering discounts to customers. The practice of offering compensation as a means of service recovery is currently routine in many hotels. There has however been little analysis conducted as to whether the strategy is actually beneficial to the hotel. In the current market the conditions under which the strategy was devised do not necessarily hold, so there is no guarantee that the strategy remains as effective as when first introduced. It is important that the effectiveness of the strategy is assessed in order to ensure that the hotel can maintain their profitability and competitive market share."
Abstract This paper examines the large store discount general merchandise market through the comparison of Target Corporation and Wal-Mart Stores. The paper is packed with facts and statistic on the corporations? investments, bank loans and markets. The paper's author asks the question of which company is best to invest in and who is the better employer. This paper is written in outline format with a clear and direct method of presenting information.
Table of Contents
The Large-Store Discount General Merchandise Market
Investment Decisions
Lending Decisions
Employer
Overview Of Target Corporation and Wal-Mart Stores, Inc
Investment Decisions
Employment
Appendix
Bibliography
From the Paper "Outline
1. The companies being analyzed are Target Corporation and Wal-Mart Stores, Inc. They are general merchandise retailers. They compete in the large-store general merchandise market, especially in the discount store segment and the US geographic market.
1.1. Target Corporation's Store Brands in multiple formats are Target, Super Target, Mervyn"s, Marshall Field"s, Target Direct and Target Visa. Target operates 1409 stores in 47 states in the United States and is currently the No.3 discount retailer in the US market.
1.2. Wal-Mart Stores, Inc has several Store Brands: Wal-Mart currently operates 2295 Wal-Mart Discount Stores; 1521 Supercenters; 564 Sam's Clubs and 34 Neighbourhood Markets in 9 countries outside the US - Argentina; Brazil; Canada; China; Germany; South Korea; Mexico; Puerto Rico; United Kingdom. Wal-Mart is today the world's largest retailer (and company measured by revenue) and occupies the No.1 position in the US General Merchandise Retail Market."
Tags: large, store, discount, general, merchandise, employment, investment, investor, information, us
Abstract The IT changes in the discount brokerage industry have been enormous over the 1995-1999 period. In response to this rapid technological advancement, the number of discount brokerages has multiplied with several hundred now active in the market. Investors are becoming increasingly price conscious and there is great pressure on technology to reduce transactions costs and the time it takes for investor's bids to reach the trading floor. Those with the most advanced technology will dominate the market. Information technology, therefore, is perhaps the most critical success factor and, more than this, it is guiding the development of the entire brokerage industry. This study takes a Work Centered Analysis (WCA) approach to the key IT changes made over the 1995-1999 period.
Abstract This paper looks at the development of a web application sales programme for Discount Components, a company that sells computer components at discounted prices in order for them to sell their merchandise on-line. It shows how the idea was to use Java servlets and the incorporation of JavaScript into the code as well as a connection to an Oracle database as opposed to an Access database.
Outline
Introduction
System Description
UML
Current Status
What Was Learned
Summary
From the Paper "Any data entered into the application is verified using JavaScript, and the screen's that are displayed are in HTML format. The way that we have set up the code, this application could be used generically for any company with merchandise. All of the lists, and displays are created directly from the hard drive, nothing is hard coded into our programme. This gives the application added functionality, and salability when bringing it to other companies in the future."
Abstract The paper analyzes Toyota's sales growth, stock performance and growth rate. The paper examines the risks that may affect Toyota's financial outcome and lists the company's discount rates for 2005, 2006 and 2007. The paper also looks at current investment projects and calculates the company's actual market value.
Outline:
Company Description
Sales Analysis
Stock Performance
Performance Analysis
Growth Rate
Risks
Discount Rate
Current Investment Projects
Toyota's Market Value
From the Paper "Toyota is the largest automobile manufacturer in Japan. The company's popularity is significantly increasing in both Europe and America generally due to a set of core competencies and sustainable comparative advantages. In this order of ideas, the Toyota cars can be purchased for lower prices than American cars, such as Ford or Chrysler. Toyota uses high technologies to manufacture their automobiles, possesses skilled and qualified personnel and operates in a continuously developing and growing market. Aside from the production and selling of cars (the automotive business), Toyota also engages in financial operations which aid customers finance their purchase or lease of cars, as well as other operations, such as providing intelligent transport systems, IT systems integrated in the cars, transportation infrastructure and logistics systems."
Abstract This paper describes and analyzes some of the different methods for appraising the value of a company that is being sold. The paper looks specifically at methods such as net-asset valuation, price-to-earnings ratio and discounted cash flows. It also describes the goals and the conditions surrounding the selling business, as well as the goals of the purchasing company.
Table of Contents:
Net-Asset Valuation
Price-To-Earnings Ratio
Discounted Cash Flow
Conclusion
From the Paper "The U.S. economy is arguably the most diversified in the world, and this allows for many different types of businesses to flourish. Companies that supply raw materials, manufacture goods, distribute items, or provide services are all part of the American economic landscape, and these businesses are regularly bought and sold. Because of the variety of businesses that can be purchased or acquired, there are several different methods for arriving at a proper valuation. Three of the common valuation methods are net asset, price-to-earnings ratio, and discounted cash flow. Each of these methods is appropriate for given situations - net asset, for example, may be the only reliable way to valuate a business that is focused on assets, such as real estate. However, all three of these methods have their limitations. Price-to-earnings, for example, rewards stock speculation and can lead to overpaying. But, taken together, these three valuation methods provide a useful suite of tools that can handle many different situations."
Abstract This paper explores the major growth in ?discount retailing? in the United Kingdom. A number of low-cost retailers established themselves in the UK and one of the most successful was the German retailer Aldi. This paper examines the recent trends within Aldi's UK operations and the company's strategy for increasing market share.
From the Paper "There have been so many significant developments in retailing since the 1970's that collectively, they have been referred to as a 'revolution'. These changes include the shopping behaviour of customers; the organisation of the retail industry; the character of the shopping environment; the planning policies of local government; and most important of all, the introduction of new retail outlets. The major development covered here concerns the growth of 'discount retailing'. A number of discount retailers have established themselves in the UK since the early 1990's and one of the most successful has been the German retailer Aldi. This essay shall deal with recent trends within Aldi's UK operations and the company's strategy for increasing market share, together with the wider implications of Aldi's presence."
Abstract Strategic management analysis of the chain of super discount stores. Applies Porter's Five Forces Model, detailing the various threats. Industry analysis, competition, suppliers. External environment analysis including development opportunities. Threats of E-commerce and increased government regulation. Consumer attitudes. Internal environmental/organizational analysis. Management chellenges. Market expansion. Strategies of the Company including new directions. Land-based and cyber-space strategies.
From the Paper "Strategic Management Case: Wal-Mart Stores, Inc.
I. Industry Analysis
The first part of this analysis will use a model called the "Five Forces" (sometimes called "Threats"), which was created in 1980 by Harvard economist, Michael Porter, in his book, Competitive Advantage, which analyzed the most tangible ways in which companies can gain long-term competitive advantage. Porter assumed that companies, when planning strategic survival, must do so within the framework of five threats:
The threat of new entrants
The threat of substitute products
The threat of rivalry or competition
The threat of bargaining power of buyers
The threat of bargaining power of suppliers..."
