The answers are as follows:
1. When Peter Metcalf describes black diamond manufacturing facility in China as 'greenfield project', he means that BLACK DIAMOND BUILT THE PLANT AND OWNS IT COMPLETELY. Of all market entry strategies, this one carries the HIGHEST risk.
A greenfield project refers to a new facility or industrial plant that is built in a location where no such facility exist before. This means that such companies are usually the first of its kind in that environment. Such investment usually involves huge amount of money and other resources as the company has to build from scratch up. This type of market entry is considered to be very risky because it involves a lot of money and all this could be lost if things don't work out as planned.
2. The following advice should be given to Peter, Thomas and Wim:
I. Recruit local people to work as sale people and distributors.
II. Research what people with annual income of less than US $1,500 really need.
III. Assign Research and Development the project of developing gears that meet the basic needs for warmth and dryness but can be manufactured inexpensively.
Since these three people intend manufacturing for people of lower income in the society, they have to take the above listed steps in order to reduce the amount of money spent during the production process and distribution period so that they will be able to make profits from the venture.
Answer:
c. the exaggerated hockey stick
Explanation:
Based on the information provided within the question it can be said that the business plan error that Nan is incurring is the exaggerated hockey stick. In the context a business, "a hockey stick" explains a startups growth as a linear steady growth at launch until it hits a certain tipping point and has a growth explosion. It seems though, that in this scenario Nan is exaggerating the initial growth aspect of the startup as saying that they can capture 40% of the market, which is an extremely high value.
Answer:
initial cash flow is 2,929,000
Explanation:
Attached is the table
Answer:
The correct answer is hot site.
Explanation:
A hot site is a site where a company's operation can take place after a disaster. it is a duplicate of the original site and is situated at an off-premises location. It is a backup site which has all the equipment that is required to continue operations. it is always online and immediately available.
A warm site has lesser equipment than a hot site and requires more time to be operational. A cold site has the least equipment and takes a few days to be operational but is the cheapest alternative.
Since the company here wants the business to resume in the least time it should go for a hot site.
Coupon rate is the yearly interest earned by a loan and it can be calculated with
where i is the annual interest and p is the par value of the bond or the initial loan amount.
For this particular case, since the semiannual payment is $28.50, then the annual payment is 2 x 28.50 = $57.00.
Thus, we have
From this, the coupon rate is 0.057 x 100% = 5.7%.
Answer: 5.7%
