Business in Action (8th Edition)
Business in Action (8th Edition)
8th Edition
ISBN: 9780134129952
Author: Courtland L. Bovee, John V. Thill
Publisher: PEARSON
Question
Book Icon
Chapter 18, Problem 1CTQ
Summary Introduction

Case summary:

Company V is multinational financial services corporation relating to Country U.    It facilitates electronic fund transfers over the globe. It has invested funds on new payment processing systems and technologies such as mobile commerce.

Company V goes into public through IPO (Initial Public Offering) during the worst downturns in

the economy. It has several factors working in its favour they are firstly it is one of the world’s best brand name. It don’t need to introduce itself to the investors.

Secondly, it has wide ‘economic moat’ which means its income generating capacity is protected by obstacles to entry includes a powerful brand. Third, it is not really a financial services company in the sense issuing credit cards or lending money.

The stocks of the company performed well in the market during the turbulent stock market situations. Company V’s growth stands to benefit from three trends they are, rise of mobile commerce, more of the transactions shifting from cash to cards and the use of credit card is starting to increase in many parts of the globe.

Characters in case:

  • Company V

To discuss: The way scenario planning is used by Company V executives in the budgeting process.

Expert Solution & Answer
Check Mark

Explanation of Solution

In the budgeting process, they could use scenario planning to prepare for the two different IPO scenarios. In this case, the IPO’s possible success and failure.

More specifically, Company V could begin the year with a more optimistic prediction assuming that the IPO is successful, but if the IPO does not go well, it will could immediately adopt a second more conservative budget and decrease the expenditure accordingly.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Choose a specific cars company. E.g Toyota, Volkswagen, Hyundai, Mercedes-Benz, BMW, Honda, Ford, Audi, Tesla Define a list of required machinery, equipment, workstations, offices, rest areas, materials, etc. Develop and define the location of machinery, equipment, workstations, offices, rest areas, materials. Make the distribution in the manufacturing facility the most efficient way possible. Develop a process distribution for one specific product. Explain why you consider this is the most efficient distribution for this specific manufacturing facility. demonstrate the benefits of optimizing a production line with the best distribution of its equipment and spaces. To be more productive and profitable.
Provide a Synposis of the Article
The goal of understanding personality in negotiation is to better predict behavior, such as the counterparty's acceptance or rejection of a negotiation offer. One investigation used acoustic and visual cues to predict the likely behavior of a counterparty to a proposal. The best visual cue predictor of the counterparty (55%) was whether they _____. A. tilted their head B. had their arms and legs crossed C. steepled their fingers D. tapped a pen
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.