The Chrysler Takeover Attempt - Case Solution. - 1014 Words

Case 2 – The Chrysler Takeover Attempt 1. Evaluate Chrysler’s financial and operating performance between 1980 and 1992. What financial and investment policies did they pursue and why? How successful were they? During the early 1980s Chrysler recovered from a severe enterprise crisis in 1978. Vehicle sales grew stable from 1980 to 1986 (with a small stagnation in 1982). In 1983 they grew much stronger than the U.S.-vehicle market and their competitors. This reflected in a steady earnings growth and Chrysler was able to repay a granted government loan 7 years earlier than initially scheduled. In 1987 their vehicle sales declined, due to a lack of investments in new product lines, Chrysler had no major new car developments in the†¦show more content†¦However, (already anticipating findings of the following questions), a higher leverage would increase the value of the company severely. * 3. What is the intrinsic value of a share of Chrysler stock? How does that value compare to the market’s valuation? * The intrinsic value of a share, based on the Net Present Value of a 10 year Cash Flow projection plus Terminal Value calculation would be $86.23. This is an excess of $31.23/share compared to the Kerkorian offer of $55. * The intrinsic value calculation is based on the following main assumptions: * Moderate sales growth rate of ~3.5% per annum * EXCEPTION: Assumed crisis in 2002 which leads to a sales decline of 20% for Chrysler. Historical data suggests some evidence that there is a decline in automotive sales every 4-6 years. Otherwise the Intrinsic value p er share would be even higher * Please refer to the Excel sheet for detailed calculations/assumptions. * 4. Why is Chrysler a takeover target? Would there be any value created by a takeover? Chrysler has a significant amount of $7.5 billion cash reserve. Holding excessive cash reserves make companies an attractive takeover target, because parts of the deal can be financed through the cash reserves. Chrysler argued that the cash was necessary for overcoming the next downturn period. Kerkorian on the other hand says that this amount of cash is far tooShow MoreRelatedChrysler - Case Study10414 Words   |  42 PagesCHRYSLER CORPORATION: NEGOTIATIONS BETWEEN DAIMLER AND CHRYSLER âˆâ€" In January 1998, Jà ¼rgen Schrempp, CEO of Daimler-Benz A.G., approached Chrysler Corporation Chairman and CEO, Robert Eaton, about a possible merger, acquisition, or deep strategic alliance between their two firms. Schrempp argued that: The two companies are a perfect fit of two leaders in their respective markets. Both companies have dedicated and skilled work forces and successful products, but in different markets and differentRead MoreChrysler in Trouble5968 Words   |  24 Pagesexpansion since the late 1900s. 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Changing Interaction of Finance, Information and Technology Research Paper

Essays on Changing Interaction of Finance, Information and Technology Research Paper ï » ¿Changing Interaction of Finance, Information and Technology Introduction The Sarbanes Oxley Act was introduced in the year 2002 to govern the reporting standards of publicly traded companies. The Act was introduced as a result of several fraudulent activities by well known corporate giants like Enron and WorldCom. Most of these frauds were accounting related. As fraudulent activities by these companies resulted in huge losses for investors, Securities and Exchange Commission initiated and introduced the Act in 2002. Thus, the major objective of the Act is to prevent accounting frauds and improve the financial reporting standards and corporate governance of companies. Every function of a company works in close association with the IT department. IT departments service is of equal importance to all other departments of a company. Be it the payroll maintenance of the HR department or stock data maintenance of the purchase department. Thus any change in the functional aspects of any of these functions will also affect the IT department. Sarbanes Oxley Act has made many changes in the accounting report standards. That means equal challenges are thrown to the IT managers of a company as is to its finance managers. This essay is intended to analyze the impact of the Act on the IT department of a company. The main body of the essay will analyze the impact of the Act on IT department. Based on this a conclusion is made in the next part. Impact on IT department when the Act is fully implemented When the Act is fully implemented, public companies will have to comply with several requirements of the Act. This involves compliance in the form of method of accounts preparation and also the method of its reporting. This is a challenge for the IT department. The first and foremost challenge is the cost involved. Many organizations have already constructed IT systems which may not be suitable for the new reporting process. There are many small companies that have still not fully implemented the Act. It is more challenging for them as constructing an entirely new IT system involve huge cost. Another major impact of Sarbanes Oxley Act is on the IT security or information security. â€Å"When drafted, the writers of the Act did not have IT security in mind. As time has passed, and compliance efforts have been initiated, organizations have begun to realize that without a certain level of assurance regarding IT security controls, compliance is not possible.† (Byrum, 2003) Complia nce with the Act also involves keeping the financial information confidential and thus maintaining the integrity of the data. This is a very big challenge for the IT managers of an organization. Data security systems of an organization are to be monitored continuously because it is always under threat from external forces. Now it is the responsibility of the IT managers to ensure that the financial information of the company is being protected from any such threat. In the event of the data being stolen by any other external force, IT mangers will also be questioned along with other directors. Companies face several issues in IT controls. When an employee change the department, his access to the previous system was not barred properly. Compliance with the Act creates duplication of activities. After an audit log is done another audit log will have to be done by the company to prove that an audit log was done. (Worthen, 2005) SOX puts forward a big challenge to companies in terms of training expenses. Most of the IT systems of the companies are very complicated. Many IT employees find it difficult to understand the complicated system. Thus the employees are to be properly trained in order to equip them with best knowledge of the system. Compliance to SOX is not a simple process. Besides the Act being mandatory, many companies fail in the SOX Audit process. The reasons are many. The main reason for the failure is that companies view it as a onetime process in a year. Activities are done only when the time for reporting approaches. A strategic-integrated approach to reporting is not adopted by companies. This reduces the efficiency of the process as activities are done within limited time frame. This means that there is less planning involved. Therefore, companies should view compliance as a continuous process. Another reason is that there is no proper control procedures adopted by companies. The control procedures to be adopted by a company are not documented anywhere. This results in an ambiguity about the processes. (Cote, 2008) Conclusion The previous part of the essay has given a brief idea about the impact of SOX on the IT department. As compliance become mandatory, the IT managers are put into great pressure. For a compliance to be effective, it is not only necessary that the financial records are error free but also they are prepared and communicated through proper IT system. In this scenario it is to be noted that there are few questions that is yet to be resolved about the impact of SOX on IT Management. The main among them is the lack of guidance on the type of reporting system. Though the Act lay down that proper compliance should be done, it does not properly address the impact on IT department. No standards are specified for the system requirements. The second major issue is the huge cost in changing the system to make it up-to-date as per the compliance requirements. The third issue is that the Act does not give any information to a company with regard to adopting an integrated approach. Companies are not m andated to adopt such strategy. If these problems are addressed properly, IT managers of a company will be kept at better position. Works cited Scott , Byrum. (2003). The impact of Sarbanes Oxley Act on IT Security. Retrieved from http://www.sans.org/reading_room/whitepapers/casestudies/impact-sarbanes-oxley-act-security_1344 Ben, Worthen. (2005). The Top Five IT Control Weaknesses. Retrieved from http://www.cio.com/article/8097/_The_Top_Five_IT_Control_Weaknesses Bryan, Cote. (2008). Failed Audit? Retrieved from http://www.s-ox.com/dsp_getFeaturesDetails.cfm?CID=2022 Thomas, Hoffman. (2005). More Companies Tap IT for Sarbanes-Oxley. Retrieved from http://www.computerworld.com/s/article/105463/More_Companies_Tap_IT_for_Sarbanes_Oxley?taxonomyId=018

The Secret Circle The Divide Chapter 22 Free Essays

Cassie lay awake staring up at the canopy cascading down from her four-poster bed. She observed the sun reflecting off the pewter candlesticks upon the mantel and off the china clock on the opposite wall. At times she still felt like a stranger in this room, as if she were at an extended slumber party at some other girl’s house. We will write a custom essay sample on The Secret Circle: The Divide Chapter 22 or any similar topic only for you Order Now When Cassie didn’t get out of bed at her regular time, her mother knocked on her door gently with her knuckles. â€Å"You’re going to be late for school,† her mother said, letting herself into the light-filled room. Cassie didn’t bother to say she didn’t feel well. She didn’t bother to speak at all. In fact, she was nearly catatonic in her motionless silence. â€Å"You don’t look so good,† her mother said, squinting with concern. â€Å"Are you sick?† Cassie had been avoiding her mother since the night she found out she had a sister. She knew if she confronted her about it, her mother would only try to explain it away like she did everything else. So instead, Cassie held the secret close to her chest, like a concealed weapon. Her mother felt her forehead. Fretfully, she examined Cassie’s eyes and the flushness of her skin. â€Å"I don’t think you’re running a temperature,† she said. Her long dark hair, pulled back from her face, made her appear even paler and thinner than usual, and Cassie appear even paler and thinner than usual, and Cassie worried that her mother was actually the one who wasn’t well. But as much as Cassie wanted to open up to her mother and tell her everything that was going on, she couldn’t. She wasn’t ready to forgive her yet. â€Å"I’m not going to school today,† Cassie said bluntly, making it clear she was in no way asking permission to stay home. But her mother didn’t argue. â€Å"I’ll make you a hot cup of tea,† she said. â€Å"I don’t want any tea.† â€Å"Okay then, no tea.† She retrieved an extra blanket from the mahogany chest in the corner, shook it out, and covered Cassie with it lovingly. â€Å"Is everything all right, Cassie? Are you angry at me about something?† Cassie turned onto her side, away from her mother. â€Å"I’m not angry,† she said to the window. â€Å"I’m tired. Will you close the door on your way out?† Her mother made no sound for a few seconds, but Cassie could sense her deliberating, whether she should push her daughter to talk to her when she knew something was wrong or let it go and give her the space she asked for. â€Å"Please,† Cassie said, to help her along. â€Å"Can you just go and let me rest?† Her mother inhaled and then exhaled deeply. It was the sound of resignation. â€Å"Okay,† she said. â€Å"Let me know if you need anything. I’ll make some soup for lunch later.† She made her way out of the room without another word. made her way out of the room without another word. Cassie couldn’t have felt more alone once the door clicked shut. Her mom was a stranger to her and, as if that weren’t enough, Adam had sided against her at their last meeting, and Diana felt like more of an enemy than a friend. Cassie had no one to turn to. She got out of bed and went to the window. The sight of the jewel-blue water always soothed her, but it looked cool and lonely to her today. I have to find some way to save Scarlett, Cassie thought. No matter what it takes. What good was it being a witch if Cassie couldn’t use her powers? Then again, how much power did she have without the full Circle behind her? A shiver ran up her spine as she stared out at the ocean, but no answers came to her. She perceived the immeasurable span of the water and its waves, but her internal rhythm didn’t synch to it the way it usually did. For once, it didn’t appear to her that the sky and sea were waiting, watching, and listening to her. She began to feel feverish, achy, and clammy. You’re not actually sick, she told herself, but she still returned to bed and buried herself deep within her covers. Minutes passed, maybe an hour, but she couldn’t rest. Every time she drifted toward a loose, mind-numbing sleep, she’d startle awake. How could she allow herself to rest at a time like this? Her Book of Shadows was in arm’s reach within her nightstand drawer. She pulled it out and paged through it, searching for some hint or clue as to what to do next. But she knew deep down there were no magical shortcuts. She would have to go to Cape Cod and battle the hunters herself. It was the only way. She could die trying, and she knew it, but she couldn’t think of a better reason to die. Her thoughts were interrupted then by another knock at her bedroom door, this time louder and less gentle. â€Å"Mom, I’m sleeping,† she called out. â€Å"It’s Adam,† said the voice behind the door. Cassie didn’t tell him to come in, but he turned the knob and opened the door anyway. â€Å"Your mom said you weren’t feeling well,† he said, closing the door behind him. Cassie watched him with indifference. â€Å"I’m fine,† she said. He kicked off his shoes and sat on the bed beside her. Something glistened in his eyes that made Cassie realize he was going to try to sweet talk her. â€Å"I don’t recall telling you to make yourself comfortable,† she said. He didn’t flinch. â€Å"I get it, Cassie. You’re angry with me. But please hear me out.† Cassie made no reply. Adam took that as his cue to continue. â€Å"You know I’m always on your side,† he said. â€Å"And I want to save Scarlett just as much as you do. We all do.† â€Å"Then there shouldn’t be a problem,† Cassie said. â€Å"We all want the same thing.† Adam furrowed his brow. â€Å"I wasn’t finished,† he said. â€Å"I want to save Scarlett, but I’m worried about how this is playing out. And I don’t want you, or any of us, to get hurt.† â€Å"This is beginning to sound like a broken record, Adam. All anyone talks about is how dangerous everything is, how we can’t perform magic, how we can’t go after the hunters. I’m beginning to think Faye is right. This Circle is a bunch of cowards.† Adam pitched forward slightly, as if Cassie had socked him in the gut. â€Å"I’m not a coward,† he said. Prove it, she wanted to say, but she felt a spasm of self-reproach. Battering Adam would get her nowhere. There would be no convincing him to see this her way. â€Å"I’m not a coward,† Adam said again, tightly, and for a moment Cassie glimpsed something in him that she found frightening. A commanding power that always lay dormant inside him. If only she could harness that power to work for her rather than against her on this. Cassie knew deep within her soul how powerful the Circle actually was when they worked together. They didn’t need to rely on a protection spell to keep them safe. Why couldn’t Adam see that? â€Å"I can’t talk about this with you now,† Cassie said. â€Å"I need some time to myself. To think.† Adam stood up. His eyes turned as dark as the sky in a storm. â€Å"I love you,† he said. â€Å"And if you have to be upset with me in order to prove that love, that’s fine. But I’m not willing to lose you.† He put his hands on his hips. The sun glimmering through the window brought out all the different colors in his hair, the shining waves of red mixed with brown and gold. â€Å"If time is what you want, okay,† he said. â€Å"I’ll be here when you’re ready. But I have one request.† He paused to make sure Cassie was listening carefully to him. â€Å"What’s your request?† she asked, still not returning his gaze. â€Å"Don’t do anything rash without talking to the Circle first.† Cassie buckled. That wasn’t exactly a fair thing to ask of her. â€Å"Promise me,† he said. She made the mistake then of looking into Adam’s pained, loving eyes. He wasn’t a coward. He was a good, brave soul, and he always wanted the best for everyone. â€Å"Please,† he said. â€Å"Don’t do anything reckless.† Cassie was no less angry with him than she was when he arrived, but she also loved him with all her heart. And she was powerless against the urge to put his troubled mind at ease. â€Å"I promise,† she said. But she knew it was a promise she probably couldn’t keep. How to cite The Secret Circle: The Divide Chapter 22, Essay examples

Work Motivation in Organizational Environmental †MyAssignmenthelp

Question: Discuss about the Work Motivation in Organizational Environmental. Answer: Introduction: According to Morelli, environmental sustainability entails the process of taking actions and making decisions with the major interest and focus on ensuring that the natural world is protected. When it comes to environmental sustainability, much of the emphasis is placed on the preservation of the environment as it supports human life. For an organization, environmental sustainability involves making decisions which are responsible so that the business adverse effect to the environment is reduced. To ensure this is possible, environmental sustainability does not involve itself with less energy consumption and reduction of waste but rather focuses on developing processes which eventually ensure that the company is fully sustainable in the future. Organizational behavior according Pinder is the study of groups and individuals in an organization with a focus on how the organization is playing a role in shaping the social and economic well-being of the societies around it (Pinder 2014). Organizational behavior entails various aspects and topics including organizational design, institutional change, corporate governance, innovation, and teamwork. Environmental sustainability influence the organizational behavior by improving the image of the brand together with its competitive advantage. According to Tilman, David and Micheal, more than 60,000 consumers in the United States make a consideration of the companys impact on the environment before buying a specific good or service (Tilman, David Micheal 2014, 520). Another influence is that investors and employees will be attracted because of the positive values. Productivity is also increased due to a reduction in waste and additionally, sustainability ensures that the business has the ability to be in compliance with regulations. Organizational Culture and its effect on environmental sustainability The organizational culture is a system of shared beliefs, customs, values and assumptions which govern the way people behave in an organization (Alvesson, Mats Stefan 2015). These beliefs, values, and customs heavily influence the people in the organization to perform their tasks, act, and dress. A positive impact of organizational culture on environmental sustainability is seen where it influences the development of the individuals values system on the environment. Organizational culture has been identified as a factor enhancing the pro-environmental behavior of employees in an organization (Alvesson Mats 2016). With enough training on environmental management and sustainability, the employees and members of an organization will develop a common understanding of the environmental values and it will become or improve on its existing environmentally sustainable business activities. The following recommendations if implemented individually or collectively has the possibility of ensuring that clients, employees, the management and the board are fully sensitized on environmental sustainability as an issue. Create the position of a sustainability or recycling coordinator Improve communication by developing a website and Android or iOS application on sustainability Make a public commitment to the sustainability of the environment Uphold the infusion of principles of environmental sustainability Continue to support the current or implement new energy management initiatives Bibliography Alvesson, Mats, and Stefan Sveningsson. Changing organizational culture: Cultural change work in progress. Routledge, 2015. Alvesson, Mats, ed. Organizational culture. Sage, 2016. Morelli, John. "Environmental sustainability: A definition for environmental professionals." Journal of environmental sustainability 1, no. 1 (2013): 2. Pinder, Craig C. Work motivation in organizational behavior. Psychology Press, 2014. Tilman, David, and Michael Clark. "Global diets link environmental sustainability and human health." Nature 515, no. 7528 (2014): 518-522.