EST305_Assignment 1
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School
Stony Brook University *
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Course
305
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
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Identify the following characteristics for each problem statement on the next slide. You can use
a real company as context
Should Samsung Electronics acquire ARM for profit?
-
What is the object of analysis?
The object of analysis is to compare the potential profit from Samsung's
acquisition of ARM with the cost of the merger to make a decision that is
beneficial to the company. ARM is a semiconductor company that manufactures
CPUs and GPUs, which are components of smartphones. Samsung Electronics
intends to reduce the manufacturing cost of smartphones through the merger of
this company.
-
Identify 2 helpful assumptions that may need to be made
Through the acquisition of the entire ARM company, Samsung cuts the price of
smartphone component parts and exceed the break-even point of merger
spending.
Although Samsung failed in the overall acquisition and partially acquired it,
reducing component parts spending, it is not efficient compared to the
investment.
-
What are 2 data points that you would need available for you to proceed?
Cost of buying ARM components for manufacturing by Samsung Electronics
before the merger.
Data of ARM's stock price and average earnings
-
What are some logical steps that should be taken when approaching this problem?
1. Calculation of cost for Samsung Electronics to manufacture smartphone
components
2. Calculation of expenditure for Samsung Electronics' merger with ARM
3. Calculate ARM's stock price and earnings
4. Calculate the break-even point by comparing Samsung Electronics' spending
on the ARM merger with ARM revenue and smartphone component manufacturing
costs
5. Decision on merger considering the timing of crossing the expected break-even
point
1. In what ways might we simplify the process of ordering products on our platform?
- Identify and improve the most time-consuming parts of a user's order.
For example, by creating a user-friendly interface to increase visibility, or by linking with
PayApp, which enables simple payment, the ordering process is further simplified.
2. In what ways might we make customers feel their information is safe when creating a new
account?
- Avoid access by strangers by forcing users to use only complex passwords or through
a multi-factor authentication procedure for new IPs.
3. In what ways might we increase the number of people who renew their subscriptions?
- Open a giveaway event for renew subscribers, or give membership benefits to those
who have subscribed for a long time.
4. In what ways might we increase customer awareness of our full product line?
- In order to increase customer awareness of the product, increase the offline market and
deliver the product's elements accurately and in detail to the customer through various
media marketing.
5. In what ways might we reduce wait time for callers needing customer service?
- In order to reduce waiting time, supervisors provide and train callers with manuals for
simple answers, and provide ARS services so that questions about simple answers do
not use manpower.
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