Arundel Partners Case Analysis Essay - 1499 Words

Arundel Partners Case Analysis Executive Summary: A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights for a studios entire production during a specified period of time or purchase a specified number of major films. Arundels profitability is dependent upon the price it pays for a portfolio of sequel rights. Our analysis of Arundels proposal includes a net present value calculation of each movie production company. In order to decide whether Arundel can make money buying movie†¦show more content†¦In addition, once production started, the studio would inevitably form an opinion about the movie and the likeliness that a sequel would be possible. This would put Arundel at a disadvantage, because they would then have to negotiate the price for sequel rights o n each film produced, while knowing much less than the production studio about the film. What are primary advantages and disadvantages of the approach that was taken by us in valuing the sequel rights? Our analysis of Arundels proposal includes a net present value calculation of each movie production company. Arundel feels that waiting to purchase sequel rights until after the movie goes into production will make it more difficult and costly to purchase the rights. Below are advantages and disadvantages of our approach. ADVANTAGES: - Simplicity - Because all available data was used, there is a greater sample in our analysis. We assume that more data points will lead to a more accurate conclusion. - We did not eliminate any outliers because we felt outliers are characteristic of the industry. - The analysis is based upon historical data rather than fabricated assumptions. - We believe that breaking out the data by studio is an advantage because it provides direction. DISADVANTAGES: - It is assumed that historicalShow MoreRelatedArundel Partners Case Analysis Essay1441 Words   |  6 Pages----------------------------------- spootyhead Apr 17, 2007 Arundel Partners Case Analysis ----------------------------------- Arundel Partners Case Analysis Executive Summary: A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights forRead MoreSolutions to Arundel Partners Case1450 Words   |  6 Pagessolutions to arundel partners case http://www.justanswer.com/law/0vnrc-solutions-arundel-partners-case.html Executive Summary:   A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights for a studios entire production during a specified period of timeRead MoreArundel Partners: the Sequel Project1339 Words   |  6 PagesArundel Partners: The Sequel Project The maximum per-film price for the sequel rights that Arundel Partners should pay is $5.12M. If Arundel Partners were to use the traditional DCF methods to find the value of the sequel rights, the NPV would be -$8.42M loss per-film (see Appendix 1). Calculation Details We assume that Arundel Partners will purchase a portfolio of films similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used toRead MoreArundel Partners Case1423 Words   |  6 Pagesï » ¿Arundel Partners: The Sequel Project The maximum per-film price for the sequel rights that Arundel Partners should pay is $5.12M. If Arundel Partners were to use the traditional DCF methods to find the value of the sequel rights, the NPV would be -$8.42M loss per-film (see Appendix 1). Calculation Details We assume that Arundel Partners will purchase a portfolio of films similar to one used in the analysis. The average hypothetical net inflow of the sequel ($21.57M) is used to figure out theRead MoreAnalysis Of The Movie Arundel Partners 779 Words   |  4 PagesArundel Partners wants to buy the rights to produce the sequels in advance rather than negotiating on a film-by-film basis because otherwise, the studios will have an informational advantage. Later on in the production process, studios will have a greater idea of the quality of the film, making them less likely to sell the rights to more profitable sequels. Advanced rights to the entire portfolio of films mitigates this informational asymmetry and creates an options-pricing model for Arundel. ThereRead MoreArundel Partners1040 Words   |  5 PagesCase Write-Up: Arundel Partners 15.415 Finance Theory Section B, Oysters Arundel Partners: The Sequel Project With the purchase of sequel rights, what Arundel is achieving is to have a call option on the revenue that each movie brings. This helps to remove the uncertainty and risks associated with producing a movie, especially with regard to moviegoers’ taste. With the sequel right, Arundel will only exercise this option to produce a sequel if the first movie proved to be popular and theRead MoreEssay Arundel Partners Guidelines922 Words   |  4 PagesGuidelines for the Arundel Partners Case Assignment This is a group project and only one case-report should be submitted FIN 6425 – â€Å"Arundel Case† Guidelines Nimalendran In this case, a movie industry analyst is asked to evaluate a proposed venture in which a group of partners would purchase the sequel rights to movies produced by the major studios. Your objective is to 1) discuss and evaluate the basic concept; 2) determine the value of the sequel rights on a per-movie basis; 3) evaluateRead MoreArundel : Options Case Essay1669 Words   |  7 PagesArundel Partners – The Sequels Project After evaluation of the proposed acquisition of the movie sequel rights, we recommend to offer movie studios as a per-movie price to purchase the sequel rights for their entire portfolio of movies the studios are going to produce over the next year.   Arundel should make an offer to buy sequel rights as the average NPV (on a per film basis ) is $5.51 mn (this is the value calculated using real options method). Hence, we should pay a price below $5.51mnRead MoreArundel Partners Investment Analysis Essay1867 Words   |  8 PagesArundel Partners Investment Analysis EXECUTIVE SUMMARY Background The proposed business venture, Arundel Partners, is an investment group which would purchase the sequels rights associated with all films produced by 1 or more selected U.S. movie production studios for a specified period of time, or a specified number of films. As your investment analysts, ourRead MoreEssay about EM and Presentation Guidance Questions 1481 Words   |  6 Pagesits capital needs over the next 3 to 5 years? What sources other than the public equity market could be tapped to satisfy those needs? 3. Why, in general, do companies go public? What are the advantages and disadvantages of public ownership? 4. The case points out that the IPO market is sometimes characterized as a â€Å"hot issue† market and that many IPOs are viewed in retrospect as having been â€Å"underpriced.† What might explain these phenomena? Should the Netscape board be concerned about underpricing

Global Warming And Climate Change - 900 Words

The Earth’s geography is always shift and changing its malleable form through various processes. Whether it is through Earths natural erosion process or a natural disaster such as an earthquake or a tsunami. Everyone knows about these type of disasters when they happen, but do they know why they happen or what causes them to happen? This can be better explained by what is called Climate Change. There are people today that actually do not believe in climate change. However, one can argue that something is truly happening to our planet as a whole. If you think global warming and climate change mean the same thing then you would be wrong. This is simply because global warming refers to the long-term trend of the warming of the planet. On the other hand, climate change â€Å"†¦encompasses global warming, but refers to the broader range of changes that are happening to our planet. These include rising sea levels, shrinking mountain glaciers, accelerating ice melt in Greenland, Antarctica and the Arctic, and shifts in flower/plant blooming times†¦Ã¢â‚¬  (Tenenbaum, 2016). The rising of sea levels, the shrinking of mountain glaciers, and the blooming times of plants are all consequences of the earth warming. The warming of the planet is caused by the burning of fossil fuels which releases carbon emissions into the air creating a greenhouse effect on literally a global scale. Within the political realm of things, â€Å"global warming and climate change are sometimes used interchangeably, butShow MoreRelatedGlobal Warmin g And Climate Change974 Words   |  4 Pagesabout global warming, whether it is true or false. Is there evidence to prove that global warming has impacted the climate due to the rise in the earth’s temperature? Climate change is a problem that is worldwide that should be reviewed. The rise in the earth’s temperature has caused some impact to the weather and climate changes to many places worldwide. This rise in temperature has the potential of causing drastic changes to the earth in many ways. It is time to view the global warming concernsRead MoreClimate Change Of Global Warming924 Words   |  4 Pages Figure 0.1 shows the different effects of global warming. Global warming is the warming of our planet at an extreme rate. The Earth’s climate has warmed by 7.8OC since 1880. (Quick facts about science, 2015). What causes global warming? The cause of global warming is the carbon dioxide. This acts like a blanket. Protecting the earth, and heating the earth. Sun rays would normally bounce around the earth, but with the blanket, the sun rays heat the blanket which heats the earth. (Petersen ScienceRead MoreGlobal Warming And Climate Change1398 Words   |  6 Pages Global warming and climate change have been frequent topics of discussion over the past several years. Although people tend to focus on the politics, it is important to look past the media aspects of it into the cold hard facts of what our Earth is currently experiencing, and what has caused it in the first place. The cause of climate change includes natural causes, but human causes are what is generating such a rapid global temperature change. It’s time that the ways in which humanity affectsRead MoreClimate Change And Global Warming1060 Words   |  5 PagesClimate change (Klaus) 1000 The terms â€Å"global warming†, â€Å"climate change† or â€Å"greenhouse effect† have become more than just parts of the popular lexicon as they rather are subject of public discussions, scientific research or political debates. Despite the popularity and the ubiquity of these terms, the public’s theoretical and conceptual understanding of them and their causal relations is often based on superficial knowledge and buzzwords or caricatures outlined and depicted in several popular mediaRead MoreClimate Change : Global Warming1194 Words   |  5 PagesDonya Curtis April 19, 2017 English 1001-rough draft Global Warming Global warming is one facet of the broader term climate change. It is the increase in the average temperature of the Earth s surface air and oceans from the mid 20th century and the projected continuation. The Global warming is primarily the consequence of building up greenhouse gasses in the atmosphere. Emission rates for most important anthropogenic greenhouse gas, CO2, have increased 120 fold in the past 140 years. WhileRead MoreClimate Change and Global Warming1074 Words   |  5 PagesClimate change and Global Warming are out of control. This means that, no matter what policies, processes or actions are implemented, the Earth as we know it will never be the same again. There is significant evidence to support this hypothesis. The dilemma becomes whether we can limit the damage and adapt to a new status quo or not. Rising sea levels and the damage caused by this phenomenon has irreversible impacts on coastlines worldwide. Damage to sensitive reef systems cannot be fixed. This alsoRead MoreClimate Change And Global Warming1022 Words   |  5 PagesWhat = Climate Change Who = Emma, Aoife, Julia, Rachael, Mariah and Cà ©line What is it? Climate Change is a change in the demographic distribution of weather patterns, and related change in oceans, land surfaces and ice sheets, happening over time scales of decades or longer. It’s the world’s greatest threat. Climate change is the change in temperature over a period of time. It involves the greenhouse effect and global warming. Where is it? It is an issue affecting everyone everywhere. ClimateRead MoreClimate Change And Global Warming1474 Words   |  6 Pagesphenomenon, known as â€Å"smog† became an often daily occurrence in big, urbanized cites across the globe. Also, Al Gore’s book, An Inconvenient Truth, popularized the issue of climate change and global warming as a result of the damage that the modern world has done to the atmosphere. He noted that people resist the facts about climate change due to the inconvenience of changing their lifestyles. But, uninhibited industrialization of several countries has led to intense modernization and revolution of theRead MoreClimate Change And Global Warming928 Words   |  4 PagesThis paper will discuss climate change and global warming on the economy. The paper also gives a description on climate change and global warming. As well as what it hold for future business owners. It will also discuss what the government is doing about climate change/global warming. Climate change is a long-term shift in the statistics of the weather (including its averages). For example, it could show up as a change in climate normal (expected average values for temperature and precipitation)Read MoreClimate Change And Global Warming1630 Words   |  7 PagesClimate Related Threats Global warming will lead to uncontrollable devastation such as famine, war, and economic instability. Climate change will accelerate the dislocation of hundreds of millions of people and the extinction of many species. The negative effects of climate change are obvious on every continent. Professor Le Quere, director of the Tyndall Centre for Climate Change Research at the University of East Anglia said, The human influence on climate change is clear. The atmosphere and

FutureCola Free Essays

The reports answers five questions elated to the case of cola in China. These questions include; 1 How effective is the positioning of Future Cola? ; 2 What are the factors that have contributed to Future Cola’s growth so far? ; 3 How might Coca Cola and Pepsi Co. Respond to Wahoo in the carbonated drinks category? ; 4 What should Wahoo do to anticipate and respond to the next level of competition? ; 5 what other strategies and tactics could Future Cola employ to continue to grow its market share? The author has used different tools to answer these questions including SOOT, PEST, Five Forces Model, Anions Matrix, Core Competencies and Competitive Advantages. We will write a custom essay sample on FutureCola or any similar topic only for you Order Now To measure the effectiveness of Strategic Positioning of Future Cola the author first analyzed its strategic positions using competitive advantage theory followed by SOOT and PEST analysis as well as porter’s five forces model which helped to explore the strengths, weaknesses, opportunities and threats for the business. Also the political, social, economic and technological factors that are contributing to the success of Future cola have been discussed. Also the business environment was analyzed by identifying threats of substitute products, threat of new products, intense rivalries among existing players, bargaining power of appliers and bargaining power of buyers. It was found that Future Cola has become a successful brand and is competing with international brands in China because it has been advertised as a patriotic brand Intelligent. Further Wahoo Group holds vast wholesale and retail network. Also the prices of Future Cola are low as compared to other brand. Pepsi and Coca Cola can meet the rising demand and success of future bola by adopting a localized marketing strategy, lowering prices and introducing new flavors that are close to the taste that Chinese people like. 4 Report also offers recommendation to Future Cola for becoming leader in China and or succeeding globally. These recommendations include; target developing nations, medium calorie drinks as well as drinks with natural ingredients Q-1. How effective is the positioning of Future Cola? Strategic Positioning â€Å"Pretax profit last year at Hangout Wahoo, the Chinese beverage giant controlled by the country richest man Gong Singing, climbed by 18% to 10. 1 billion Yuan, or $1. 6 billion, amid a fall in raw material costs, a company spokesman told Forbes†. (Forbes, 2013) The Company started its operations in 1987 as a milk factory that was run by a School with the goal of providing children with nutrient drinks. The company is among top five global beverage producers. Future Cola was introduced by Wahoo Group of China in 1998 at the time when carbonated drinks had become popular and this category was covering half of the volume of the soft drink industry. In 1997 the output of cola in China was 1. 36 million with 80% combined market share of Pepsi and Coca Cola. Currently on number three in China and Number five in the world among soft drink manufacturers Wahoo has successfully achieved and maintained its position. (Nancy Dad, 2004) Competitive Advantage The competitive advantage of Future Cola lays in its generic business strategy that fermentation strategy. The Future Cola gained success because the CEO was prepared on how multinationals will respond to this new brand and prepared to compete with response as well increase its market share in the future. (Nancy Dad, 2004) The outward evidence of competitive advantage for Future Cola can be seen in its success in China as third major soft drink in China and high growth in sales. Future Cola is enjoying superior delivered cost position due to low costs 6 international brands and close to the Chinese taste and culture. Positional advantage has many benefits and cannot be exploited In theory, the competitive advantage is described from two perspectives; 1 . Resource 2. Capabilities As regards resources Future cola has competitive advantage that because it has vast distribution network, financial capacity, its manufacturing and distribution network in low cost, has production capacity, it purchases raw material. Capabilities include focused knowledge, orientation of customer service, expertise in design, experience as a food and beverage company, holds trade relationship in China, is able to utilize relevant technologies, capability to design system as well as to response capability. SOOT Analysts Strengths Weaknesses ;Brand name resembling to Coca Cola ;Fifth biggest brand in the world ;Third Major Brand in China ;China’ National Brand ;Vast network of wholesale ;Cheaper than its competitors ;Attractive Marketing Strategies ;Brand Management Skills ;Not an international brand like Pepsi and Coca Cola ;Focusing less on Threats Opportunities ;Great Competition ;Changing consumption trends ;Restriction on carbonated drinks ;Can expand its network to emerging markets and developing nations to ;Can introduce different flavors to grow sales ;Can acquire major players in China Figure I-SOOT Analysis Future Cola Brand name resembling to Coca Cola which is already familiar One among the five biggest brands in the world Third Major Brand in China Established as China’ National Brand Vast network of wholesale Cheaper than its competitors Attractive Marketing Strategies and Brand Management Skills Weaknesses 8 Not an international brand like Pepsi and Coca Cola Can expand its network to emerging markets and developing nations to increase sales and profits Can introduce different flavors to grow sales Can acquire major players in China Great Competition with presence of major brands Changing consumption trends How to cite FutureCola, Papers