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Stryker Corporation
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In-sourcing PCBs analysis|

42506514 Ara Koh
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TABLE OF CONTENTS
 

EXECUTIVE SUMMARY
The purpose of this report is to assess the performance of Stryker Corporation and recommend which company would be the better project valuation and capital expenditure proposal which is Option #3 over the coming period. The report calculates the ~~~~~~~~~~~ for in-sourcing Printed circuit boards (PCBs).

INTRODUCTION
When business operating, to maximize profit is most important. The composition revenue in business operating side is that business items, human resources and capital to invest. Also, good quality with reasonable price is made attractive to buyers. However, one of the first things in business operating to make higher revenue is minimizing cost. There is one company to face increasing operating cost with worse quality of goods.  

ANALYSIS
Option #3
Stryker Corporation (Stryker co.) is providing medical devices and medical equipment in market. Printed circuit boards (PCBs) is one of important components of their business. They spend more than $10 million and increasing amount of PCBs to grow their business. They used to out-sourcing the one of components that the PCBs from a number of small firms. However, these suppliers’ components are unsatisfied of quality and delivery. Therefore, Stryker Corporation comes up with options for high quality and fast delivery components. Option #3 is one of solving problems that Stryker co. operates in-sourcing the components.

Project valuation
* Methodology

* Process

* Interpretation

* Discussion

* Analysis

 
CONLUSIONS AND RECOMMENDATIONS
The recommendation of option #3 is that it is better to build manufacture line for PCBs. There are several reasons for why the firm builds new line for it. Firstly, capital expenditure proposal consider as equity that it is expense for future profit. Thus, option #3 is investment in plant and equipment that effect on earnings per share (EPS) positively. Secondly, consuming of PCBs is getting increased. If Stryker co. receives low quality and late delivery components from suppliers on rising PCBs consumption, they can be unsatisfied their own demanders both supply of products and quality of products without new plant. Lastly, business cost getting increase. The quality of previous suppliers products are getting low. Thus, if the Stryker co. find new supplier for the PCBs but the cost of PCBs may be increased. Even if quality of PCBs is satisfied, it is inappropriate the firms purpose is that maximize profit and minimize cost.  

REFERENCES
 
APPENDIX

Option #3
Stryker Corporation (Stryker co.) is providing medical devices and medical equipment in market. Printed circuit boards (PCBs) is one of important components of their business. They spend more than $10 million and increasing amount of PCBs to grow their business. They used to out-sourcing the one of components that the PCBs from a number of small firms. However, these suppliers’ components are unsatisfied of quality and delivery. Therefore, Stryker Corporation comes up with options for high quality and fast delivery components. Option #3 is one of solving problems that Stryker co. operates in-sourcing the components.

Project valuation
* Methodology

* Process

* Interpretation

* Discussion

* Analysis

If! 만약 우리 계산이 맞으면, 데이터 보여주면서 완전 갠춘해.

* Capital expenditure proposal (= 자본, ->미래이윤을위한지출 = 고정자산facf: fixed cost, 설비투자 -> EPS에영향) * No change in B/S, asset and capital increase

Conclusion

Application of basic principles of project valuation and capital budgeting decision rule.

Evaluating of the ‘option #3’
* Capital expenditure proposal (= 자본, ->미래이윤을위한지출 = 고정자산facf: fixed cost, 설비투자 -> EPS에영향) * No change in B/S, asset and capital increase

1. State ‘ option #3’비즈니스케이스의중요요소

2. Using excel- calculation – finance cost

* Expected incremental cash...
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