Case Study : 7-3 Quality Metal Servce Center Essay

In the case “Metalcraft Supplier Scorecard”, the author uses an example of a decision-making problem regarding to which supplier should Metalcraft choose to lead to the topic of the Metalcraft supplier scorecard. Metalcraft, as a component designer and manufacturer, supplies a few largest automobile manufacturers with vehicle parts all over the world. As one of the tier 1 suppliers, Metalcraft offers and ships finished parts and components using in the automobile production process to automakers.

* I think these investments are justified because the information technologies/systems that used in Capital One is obviously useful for its success and other company can use its strategy as a

Leadership takes place throughout the corporate structure at Central Market. The department managers are allowed to create their own plans. The managers at the store are responsible for the success or failure of their plans. This provides managers at the store with

1.) What are the recommended percentages of each project that HVC should fund and the net present value of the total investment?

Each division is operating independently with its own division manager. Also, each division’s performance had been judged on its profit and return on investment (ROI). The company policy of decentralizing responsibility and authority for all

In January 2003, Michael Pogonowski, the chief financial officer of Aurora Textile Company, was questioning whether the company should install a new ring-spinning machine, the Zinser 351, in the Hunter production facility. This new machine has ability to produce a finer-quality yarn that would be used for higher-quality and higher-margin products. In deciding whether or not to invest this new machine, NPV and the payback period are critical factors. Firstly, we need to forecast the cash flows that the Zinser 351 will generate in the future. After calculation, the ten-year NPV will be $3, 172,582. Secondly, we use the payback period to analyze the acceptance of this project. Based on this analysis,

3. How did the new performance evaluation system--Full responsibility Accounting-- differ from the old?At Multiquimica do Brasil they can now trace costs, revenues, or profits to the individual product managers and product group managers who are primarily responsible for making decisions about the costs, revenues, or profits in question and taking action about them. The new system called Responsibility accounting is appropriate where top management has delegated

* A broader capital base gives the company more access to credit which gives the company an option to venture into new business opportunities

evaluated by the firm. Management is in charge of capital structure for a firm, therefor the decisions they

Cumberland Metal Industries (CMI), which was historically one of the largest manufacturers of curled metal products in the country, has developed a new product. This product is a metal cushion pad which is to be used with large crane-pile driving activities. The cushion is to prevent the shock of the hammer from damaging the pile. CMI’s cushion pad is a “one-of-a-kind” product as there is nothing similar on the market today making comparisons difficult. Upon successful tests conducted alongside Colerick Foundation Company (Colerick), CMI now seeks to launch this new product to the market. Not unlike many other companies that develop new products, CMI is struggling to set a market price to go along with a

When considering the proposed advertising program and technology upgrades, we have to ensure that the project will likely add value to the company, so we need to consider the return on investment versus the cost of capital. If the return on investment, measured by the net present value and internal rate of return, exceeds the cost of capital, the investment should be taken.

To be able to understand the goal of your company you have to be able to understand the overall goal in relation to the measurements, meaning that the rate at which the system generates sales increases while at the same time decreasing the money that the company has used to purchase things and also decreasing the amount of money that is spent moving “inventory” into the throughput. The interesting part of these measurements is that they all have to do with the goal of the company, meaning that they all involve money, which is the overall goal of the company, to make money.

Rainbow Products is considering the purchase of a paint-mixing machine to reduce labor costs.The savings are expected to result in additional cash flows to Rainbow of $5,000 per year. Themachine costs $35,000 and is expected to last for 15 years. Rainbow has determined that the cost ofcapital for such an investment is 12%.[A] Compute the payback, net present value (NPV), and internal rate of return (IRR) for this machine.Should Rainbow purchase it? Assume that all cash flows (except the initial purchase) occur at the endof the year, and do not consider taxes. Rainbow Products is considering the purchase of a paint-mixing machine to reduce labor costs.The savings are expected to result in additional cash flows to Rainbow of $5,000 per

Lehigh Steel is a manufacturer of speciality steels for high strength, high use applications. Its financial performance has generally trended wit but outperformed the industry as a whole.

1. Is the capital investment proposal described in Exhibit 3 and attractive one for Quality Metal Service Center?